Schedule 4
Finance (No. 2) Bill
9:45 am
Joe Benton (Bootle, Labour)
With this it will be convenient to discuss the following amendments: No. 42, in page 165, line 26 [Vol I], at end insert—
‘(1A) Where a company incurs expenditure on the development of a film that is abandoned before pre-production and subsequently begins to carry on a trade as a film production company in relation to another film, the expenditure may be treated as expenditure of the trade of the second film and as if incurred immediately after the company began to carry it on. Provided that the same expenditure is not to be given more than once.'.
No. 53, in page 166, line 19 [Vol I], leave out paragraphs 7, 8 and 9 and insert—
‘7 For the purposes of this Schedule profits and losses are calculated in accordance with generally-accepted United Kingdom accounting principles.'.
No. 55, in page 167, line 4 [Vol I], at end insert
‘; and accordingly—
(a) where, within six years of the end of the first period of account, it becomes clear that the original estimates were incorrect, the film production company can elect in writing to amend the original tax computations to reflect the correct position;
(b) income taxed under the provisions of paragraph 7 of this Schedule shall not be taken into account for tax purposes in a subsequent period of account.'.
No. 41, in page 167 [Vol I], leave out lines 6 to 17.