S135 Income Tax (Trading and Other Income) Act 2005, S151 Corporation Tax Act 2009

Sale for a fixed sum

When the master version of a sound recording is sold for a fixed sum the seller will have thereby realised the full value of that master version. So, under the income matching method (BIM56215), the seller is able immediately to deduct the balance of production or acquisition expenditure.

The cost recovery method (BIM56230) has no application here as it only applies where it can increase the deduction above the income matching method. But the entire expenditure is already deductible under income matching.

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