HMRC internal manual

Film Production Company Manual

FPC30020 - Film Production Companies: Losses: Pre-completion periods


Relief limited to carry forward

The film tax regime includes rules which modify the normal loss relief rules for film production companies (FPCs). These modifications include a restriction on the use of losses for accounting periods preceding that in which the film is completed.

Where an FPC has a trading loss for any accounting period preceding that in which the film is completed (FPC10150) the loss is not available for any form of loss relief (including group relief) except that it may be carried forward to set against future profits of the same trade.

These provisions are not altered by the new loss relief provisions brought in from 1 April 2017 for pre-completion periods.