CREC010800 - Overview and definitions: exchange of information between HMRC, DCMS and the BFI
Sections 1179DN and 1179FG of CTA 2009
AVEC and VGEC are available to a production company only in respect of a film, TV programme and video game which has been certified (on either an interim or final basis) as British by the Secretary of State for the Department for Culture, Media and Sport (DCMS) under:
Schedule 1 of the Films Act 1985
Sections 1179DK to 1179DM of CTA 2009
Sections 1179FD to 1179FF of CTA 2009
Where a production company does not hold a current certificate in respect of a production, the production is not eligible for AVEC/VGEC. See CREC028000.
In practice, the Secretary of State certifies films on the advice of the Certification Unit within the British Film Institute (BFI). DCMS also has the authority to revoke a certificate previously issued.
An application for an interim certificate can be made whilst production/development is ongoing, but an application for a final certificate can only be made once the film, TV programme or game is completed. Unless they are revoked, interim certificates are valid for 3 years from the date of issue and final certificates are valid indefinitely.
It is possible that HMRC could uncover information during the normal enquiry process which suggests that a production does not meet the criteria for being certified as British. In some cases, this might constitute evidence that a production had been certified as British on the basis of incorrect or inaccurate information. However, HMRC would not be able simply to disregard the certificate presented by the production company; a certificate can only be revoked by DCMS.
To address this situation, HMRC is authorised to provide DCMS information relevant to certification. Such provision could lead to DCMS revoking the original certificate and the denial of AVEC/VGEC in relation to the production. One effect of sections 1179DN and 1179FG CTA 2009, therefore, is to prevent production companies from making claims for expenditure credits to which they are not entitled.
HMRC has discretion about how it exercises this authority; DCMS cannot demand information from HMRC. Any information provided by HMRC to DCMS must relate to the Secretary of State’s functions under the Films Act or the relevant sections of CTA 2009. DCMS may share any such information with the BFI Certification Unit.
Information disclosed by HMRC in this way is subject to the same protection as if it were held exclusively by HMRC and cannot be shared outside DCMS and the BFI Certification Unit, except in certain limited circumstances described in section 1179DN(4) CTA 2009. Wrongful disclosure of such information would constitute an offence and an individual committing this offence is liable to a fine or imprisonment.
If you discover information which you believe has a bearing upon a production which might have been certified on the basis of false or incorrect information provided to DCMS, you should contact Anti-Avoidance Group in the first instance.
Information provided by applicants to DCMS during the process of applying for a certificate is not normally disclosed to third parties. However, DCMS may disclose information to the BFI Certification Unit and HMRC.
More information about certification can be found at the following webpage: www.bfi.org.uk/certification
Queries concerning certification should be directed to the BFI Certification Unit at certifications@bfi.org.uk