CTA 2009, Pt. 15, Ch. 2 sets out the methodology for calculating the profit or loss of a film production company. The treatment under Ch. 2 applies to all films produced by a film production company regardless of whether or not the film qualifies for film tax relief under Ch. 3. The production of each film is treated as a separate trade (CTA 2009, s. 1188).
The rules apply a revenue treatment to income and expenditure by a film production company, even when the costs are treated as capital in the company’s financial statements.