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HMRC internal manual

Film Production Company Manual

HM Revenue & Customs
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Claims: how relief is claimed

Film Tax Relief (FTR) is a corporation tax relief. It is claimed for each relevant accounting period by completing the appropriate section (“Information about enhanced expenditure”) in the film production company’s (FPC’s) tax return form (CT600) and by supplying the required supplementary information set.

The tax return form must be accompanied by either an interim or final certificate, as the case may be, from the Department for Culture Media and Sport that the film is British (FPC40030).

Additional deduction

The FPC should indicate that it is claiming FTR using form CT600 by completing the boxes as below in the relevant version:

Description                        CT600    Version 2\*          Version 3\*

Tax due                                                         86                         525

Creative tax credit                                         _                           540 

Amount claimed                                            87                         545

Amount payable                                            89                         570

Creative enhanced expenditure                      _                           665

Film/Creative tax relief                                 167                         n/a

Enhanced expenditure                                 101                         670

Payable tax credit                                        168                         885

Boxes 99, 100, 102 and 103 are not relevant to FTR.


An FPC incurs total expenditure of £45m on a British film. Of this expenditure, £40m is core expenditure. £30m (75%) of that core expenditure is incurred in the United Kingdom, and £10m (25%) elsewhere. The company is entitled to the following deductions:

  • £45m “ordinary” deduction, plus
  • £24m additional deduction (= 80% x £30m: the core UK expenditure is less than 80% of £40m, so it all qualifies (FPC55020))

Giving a total deduction of £69m.

The figure that should be entered in box 101 (the “enhanced expenditure figure” referred to in the Note to box 101) is £24m.

Payable tax credit

If the company is claiming any payable tax credit, then it should enter the amount in the relevant boxes as above.

Interim claims

Certain of the conditions which determine entitlement to relief or the quantum of relief (British film (FPC40030); required minimum amount of UK expenditure (FPC40040); and, if relevant, limited-budget status (FPC10160)) can only be met with certainty once the film is completed;

  • Whether a film is a British film depends on who is involved in the production and where the film is made, so that although the initial plan may be to make a film which qualifies as British, changes in response to circumstances (such as the unavailability of a lead actor) may mean that the eventual film does not.
  • Similarly, the actual amount of core expenditure in the UK, as a proportion of the total, is only certain on completion, as is the overall spending on the film (which determines whether the film is limited-budget or not).

The legislation therefore allows relief to be claimed on an interim basis, assuming that the required conditions have been met. Film productions typically operate according to a strict budget so it should be clear from the outset whether they are likely to be met. If any of the conditions are not actually met on completion of the film, then the position is adjusted to reflect the outcome, including, if appropriate, repayment of film tax credit to HMRC and HMRC charging interest (though penalties would not normally be appropriate).

Supplementary Information

Claims should be supported by certain additional information. There are two cases with differing requirements:

  • films which are completed within a single accounting period, and
  • films whose production takes more than one period

Each of these cases is covered at FPC60020.