Paragraph 6 CTA 2010

CTA 2010 is amended as follows.

In section 45A(3) (conditions for carrying forward trade loss against total profits), in paragraph (b)(ii), after “section” insert “1179BF,”.

In Part 8A (profits from exploiting patents etc)—

In Part 8B (profits taxable at Northern Ireland rate), after Chapter 10 insert—

“Chapter 10A

Films, television programmes and video games qualifying for expenditure credit

Introduction

Application and interpretation

357QE

(1)

This Chapter makes provision about the interaction between this Part and Part 14A of CTA 2009 (films, television programmes and video games).

(2)

This Chapter applies if—

(a)

a company is a Northern Ireland company in an accounting period,

(b)

the company is treated under Part 14A of CTA 2009 as carrying on a separate trade in that period (see 1179B of that Act), and

(c)

that trade is a qualifying trade.

(3)

References in this Chapter to “the Northern Ireland company”, “the accounting period” and “the separate trade” are to be read accordingly.

Expenditure credit

Expenditure credit to count towards mainstream profits or losses

357QF

(1)

Subsection (2) applies if, under section 1179CB of CTA 2009 (expenditure credit under Part 14A of CTA 2009 to be taxable receipt), the Northern Ireland company brings an amount of audiovisual expenditure credit or video game expenditure credit into account in calculating the profits of the separate trade for the accounting period.

(2)

The amount is to form part of the mainstream profits or mainstream losses of the trade for that period.

Losses of separate trade

Carrying forward of production losses

357QG

(1)

If the accounting period is a pre-completion period within the meaning of section 1179BF of CTA 2009 (carrying forward of production losses in separate trade), that section applies in relation to the separate trade and that accounting period subject to the following provisions.

(2)

In subsection (1) of that section, the reference to a loss is to be read as a reference to—

(a)

any Northern Ireland losses, or

(b)

any mainstream losses;

and the rest of that section is to be read accordingly.

(3)

Subsection (4) applies if the Northern Ireland company has in the accounting period—

(a)

both Northern Ireland losses of the separate trade and mainstream profits of that trade, or

(b)

both mainstream losses of the separate trade and Northern Ireland profits of that trade.

(4)

The company may, despite section 1179BF(2) of CTA 2009, claim under section 37 (relief for trade losses against total profits) for—

(a)

relief for those Northern Ireland losses against those mainstream profits, or

(b)

relief for those mainstream losses against those Northern Ireland profits.

Transfer of terminal loss

357QH

(1)

Subsection (2) applies if—

(a)

the Northern Ireland company ceases to carry on the separate trade in the accounting period,

(b)

as a result, section 1179BG of CTA 2009 (transfer of terminal loss in separate production trade to other production or group company) applies, and

(c)

the amount in respect of which it applies (see subsection (1)(b) of that section) represents a Northern Ireland loss.

(2)

The references to a loss in subsections (2) and (3)(b) of that section are to be read as references to a Northern Ireland loss.”