Commentary on Sections Overview Chapter 1: Introduction Section 1182: “Film production company”
3007.This section defines “film production company” for this Part. It is based on section 32 of FA 2006.
3008.There can be at most one company that fits the description of “film production company” in relation to a particular film. There may be no such company. A company might be a film production company in relation to some of the films that it is involved with but not in relation to others.
3009.If a company is the film production company in relation to a particular film its production and exploitation activities in relation to the film are, for corporation tax purposes, treated as a separate trade (see Chapter 2: taxation of activities of film production company). A film production company may, but need not, be entitled to additional reliefs in relation to the film concerned (see Chapter 3: film tax relief).
3010.Subsection (7) provides for a company to elect that it is not to be treated as a film production company in relation to films. Such an election is likely to be helpful to companies that are not entitled to additional reliefs in relation to films that they are involved with.