Income Tax (Trading and Other Income) Act 2005 section 130

Expenditure to which this Chapter applies

Section 130 defines the types of expenditure covered by this Chapter, which deals with the tax treatment of costs related to the production or acquisition of original master versions of sound recordings.

• The Chapter covers expenditure on producing or acquiring the original master version of a sound recording, including any associated rights held or acquired with it.
• Production expenditure means costs of creating the original master, while acquisition expenditure means costs of purchasing it.
• Interest and incidental costs of obtaining finance are specifically excluded from the definitions of production or acquisition expenditure.
• Any deductions claimed under this Chapter are subject to "any prohibitive rule" — meaning any provision in the Income Tax Acts that prevents or restricts a deduction when calculating trade profits.