[F1PART 15CU.K.Theatrical Productions

Textual Amendments

F1Pt. 15C inserted (17.7.2014 for specified purposes and with effect in accordance with Sch. 4 para. 16 of the amending Act, 22.8.2014 in so far as not already in force) by Finance Act 2014 (c. 26), Sch. 4 paras. 1, 16; S.I. 2014/2228, art. 2

Theatre tax creditsU.K.

1217KTheatre tax credit claimable if company has surrenderable lossU.K.

(1)A company which—

(a)is treated under section 1217H(3) as carrying on a separate trade during the whole or part of an accounting period, and

(b)has a surrenderable loss in that period,

may claim a theatre tax credit for that accounting period.

(2)Section 1217KA sets out how to calculate the amount of any surrenderable loss that the company has in the accounting period.

(3)A company making a claim may surrender the whole or part of its surrenderable loss in the accounting period.

(4)The amount of the theatre tax credit to which a company making a claim is entitled for the accounting period is—

(a)25% of the amount of the loss surrendered if the theatrical production is a touring production, or

(b)20% of the amount of the loss surrendered if the theatrical production is not a touring production.

(5)The company's available loss for the accounting period (see section 1217KA(2)) is reduced by the amount surrendered.

(6)A theatrical production is a “touring production” only if the company intends at the beginning of the production phase—

(a)that it will present performances of the production in 6 or more separate premises, or

(b)that it will present performances of the production in at least two separate premises and that the number of performances will be at least 14.

(7)See Schedule 18 to FA 1998 (in particular, Part 9D) for provision about the procedure for making claims under subsection (1).

1217KAAmount of surrenderable lossU.K.

(1)The company's surrenderable loss in the accounting period is—

(a)the company's available loss for the period in the separate theatrical trade (see subsections (2) and (3)), or

(b)if less, the available qualifying expenditure for the period (see subsections (4) and (5)).

(2)The company's available loss for an accounting period is—

where—

L is the amount of the company's loss for the period in the separate theatrical trade, and

RUL is the amount of any relevant unused loss of the company (see subsection (3)).

(3)The “relevant unused loss” of a company is so much of any available loss of the company for the previous accounting period as has not been—

(a)surrendered under section 1217K, or

(b)carried forward under section 45 [F2or 45B] of CTA 2010 and set against profits of the separate theatrical trade.

(4)For the first period of account during which the separate theatrical trade is carried on, the available qualifying expenditure is the amount that is E for that period for the purposes of section 1217J(2).

(5)For any period of account after the first, the available qualifying expenditure is—

where—

E is the amount that is E for that period for the purposes of section 1217J(3), and

S is the total amount previously surrendered under section 1217K.

(6)If a period of account of the separate theatrical trade does not coincide with an accounting period, any necessary apportionments are to be made by reference to the number of days in the periods concerned.

Textual Amendments

F2Words in s. 1217KA(3)(b) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 142

1217KBPayment in respect of theatre tax creditU.K.

(1)If a company—

(a)is entitled to a theatre tax credit for an accounting period, and

(b)makes a claim,

the Commissioners for Her Majesty's Revenue and Customs (“the Commissioners”) must pay the amount of the credit to the company.

(2)An amount payable in respect of—

(a)a theatre tax credit, or

(b)interest on a theatre tax credit under section 826 of ICTA,

may be applied in discharging any liability of the company to pay corporation tax.

To the extent that it is so applied the Commissioners' liability under subsection (1) is discharged.

(3)If the company's company tax return for the accounting period is enquired into by the Commissioners, no payment in respect of a theatre tax credit for that period need be made before the Commissioners' enquiries are completed (see paragraph 32 of Schedule 18 to FA 1998).

In those circumstances the Commissioners may make a payment on a provisional basis of such amount as they consider appropriate.

(4)No payment need be made in respect of a theatre tax credit for an accounting period before the company has paid to the Commissioners any amount that it is required to pay for payment periods ending in that accounting period—

(a)under PAYE regulations,

(b)under section 966 of ITA 2007 (visiting performers), or

(c)in respect of Class 1 national insurance contributions under Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

(5)A payment in respect of a theatre tax credit is not income of the company for any tax purpose.

1217KCLimit on State aidU.K.

(1)The total amount of any theatre tax credits payable under section 1217KB in the case of any undertaking is not to exceed 50 million euros per year.

(2)In this section “undertaking” has the same meaning as in the General Block Exemption Regulation.

(3)In this section “the General Block Exemption Regulation” means any regulation that—

[F3(a)was in force under Article 1 of Council Regulation (EC) No 994/98 immediately before IP completion day, and]

(b)[F4made], in relation to aid in favour of culture and heritage conservation, the declaration provided for by that Article.]

Textual Amendments