Annex 1: Minor changes in the law made by the Act: Change 40: Allocation of expenditure to relevant periods: sections 135, 137 and 138
This change drops the requirement to make a claim to allocate expenditure to a relevant period under the “cost recovery” method in section 40B(5) of F(No 2)A 1992 and the special rules for preliminary expenditure and production and acquisition expenditure on a qualifying film in sections 41 and 42 of F(No 2)A 1992.
This change is in taxpayers’ favour in principle and may benefit some taxpayers in practice. But the numbers affected and the practical effects are likely to be small.