Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Business Income Manual

Films and sound recordings: old regime for films: avoidance: individual exit schemes: who is affected by the legislation?

S797(1), S800 Income Tax Act 2007

The legislation to counter individual exit schemes applies to individuals. There is separate legislation to counter corporate exits (see BIM56560).

The legislation to prevent exits by individuals potentially applies to any individual who has benefited from film relief, i.e. someone who has:

  • sustained a film related loss,
  • in a trade carried on by the individual either alone or in partnership, and
  • who has claimed relief against general income (sideways relief) or against chargeable gains for those losses (see BIM85005).

A film related loss is any trading loss where any of the legislation at BIM56010 has been applied in computing the losses of the trade.

Such an individual will be subject to a stand-alone charge to Income Tax (BIM56535) where:

  • he has disposed of any of his rights to profits arising from the trade (BIM56530), and
  • an exit event has occurred (see BIM56525).