34 |
of qualifying ships is, however, provided for the purpose of the 1995 rules on deferment of balancing charges.312 |
| Balancing charges arising on the disposal of qualifying ships313 may be rolled over for a period of up to 3 years to be set off against subsequent expenditure314 on new ships within that period. The ship may have been owned by the taxpayer previously, but there must be a 6-year gap between ownership.315 |
| FA 2000 introduces an alternative basis of taxation of shipping under which corporation tax would be based, in part, on tonnage.316 |
24A.2.14 Master Copies of Films |
At one time, the costs of acquiring master copies of films qualified for 100% first year allowances but this was stopped in 1982.317 Writing down allowances remain available but today it is more usual to claim special reliefs; these reliefs used to form part of CAA 1990 but CAA 2001, very correctly, removes these from the scope of the CAA and reenacts the legislation as F No 2 A 1992 sections 40A–40D so that they fit alongside other relevant reliefs to do with qualifying films, which will now be considered together. These film provisions do not apply to audio tapes, disks or non-qualifying films. |
| First, certain preliminary expenditure on qualifying films is allowable as a revenue expense. The film may take the physical form of a disk, negative or tape.318 The essence of the rule is to recognise the long time gap between the incurring of expenditure on a film and the film’s release. The rules bring forward the date at which relief can be given. |
The film is a qualifying film if certified by the Secretary of State under the Films Act 1985, Schedule 1 as a qualifying film, ie it must meet certain criteria with regard to the EC content of a film and residence of the ‘filmer.’319 |
| Under these rules the film maker can write off most preliminary expenditure immediately;320 the word ‘most’ is used because the relief is subject to a cap; the expenditure must not exceed 20% of total shooting as at the first day of shooting.321 These rules also reach abortive expenditure. |
Secondly, certain production or acquisition expenditure on a qualifying film which is of a revenue nature322 can be written off over three years instead of just one.323 This does not apply if the film |