CREC054210 - Eligible expenditure: UK expenditure: film and TV examples: services related to a single territory
Principal photography听
In the case of services supplied directly in relation to principal photography, it should be clear where they are used or consumed.听
Example 1听
A production company hires a stuntman to take part in filming which takes place on location in the UK.听
The nature of the service is the provision of a specialist performance which is required by a specific scene which is filmed during the process of principal photography.听
Because this principal photography takes place in the UK, the stuntman鈥檚 service is used or consumed by the production company within the UK and therefore meets the definition of UK expenditure. That听remains听the case if the stuntman were听supplied by a company outside the UK, or if he were a non-UK national, or both.听
Example 2听
A听production company hires an actor to perform in a short scene which is filmed on location outside the UK.听All the remaining scenes are filmed within the UK.听
The nature of the service is again the provision of a performance which is required by a specific scene which is filmed during the process of principal photography. Because the scene in question is filmed outside the UK, the service of the actor is not used or consumed in the UK, and therefore the relevant expenditure is not UK expenditure.听
End of examples听
A similar approach can be taken in the case of other services directly associated with principal photography, because there is a clear link to a physical performance within a specific location. These include services听supplied by actors, camera operators, focus pullers, make-up artists, production managers, caterers听and any others听directly involved in the process of principal photography.听In each case, the services relate to UK expenditure to the extent to which the physical location of principal photography is within the UK.听
However, it is important to note that the expenditure on these services is not UK expenditure because听the service is physically performed within the UK by the supplier. Instead, it is UK expenditure because the听service听is used or consumed by the recipient within the UK.
Other stages of production听
Similar considerations will apply where the goods or services are obviously related to a single territory听鈥� for example,听where听all of听the post-production work on the soundtrack takes place in听a single studio.听