12. Non-qualifying expenditure

Non-qualifying expenditure on the production of a qualifying film includes:

(a) costs associated with the distribution or promotion of the film,

(b) costs arising after delivery of the materials contracted for with the relevant distributor or broadcaster,

(c) costs of organising or providing pre-sales monies,

(d) costs of acquiring rights other than those necessary for the production of the film (including relevant legal fees),

(e) capital expenditure on assets used in the production of the film which are not used up in that process,

(f) amounts that are paid out of, or are dependent on, or arise from rights in, the receipts, earnings or profits of the film,

(g) fees or other payments deferred unless the payment of such sums is made no later than 4 months after completion,

(h) professional fees associated with claiming ‘‘tax shelters’’ or the film corporation tax credit including opining on the eligibility for a ‘‘shelter’’ or the credit.