The measure

Legislation will be introduced in Finance Bill 2010 to correct an unintended anomaly affecting the amount of tax credit claimable where films are produced over more than one accounting period.  The loss surrenderable for tax credit will now be calculated to be the lesser of:

• The available qualifying expenditure; and
• The loss for the period, plus any unsurrendered loss brought forward.

Who will be affected?

Film production companies making films with production spends spread over two or more accounting periods, and which have some overseas expenditure.

When?

Accounting periods ending on or after 9 December 2009 and will be treated for those periods as always having had effect.