F1PART 15CTheatrical Productions
Claim for additional deduction
1217HClaim for additional deduction
(1)
A company which qualifies for relief in relation to a theatrical production may claim an additional deduction in relation to the production.
(2)
A claim under subsection (1) is made with respect to an accounting period.
(See Schedule 18 to FA 1998, and in particular Part 9D, for provision about the procedure for making claims.)
(3)
Where a company has made a claim under subsection (1)—
(a)
the company's activities in relation to the theatrical production are treated for corporation tax purposes as a trade separate from any other activities of the company (including activities in relation to any other theatrical production), and
(b)
the company is entitled to make an additional deduction, in accordance with section 1217J, in calculating the profit or loss of the separate trade for the accounting period concerned.
(4)
The company is treated as beginning to carry on the separate trade—
(a)
when the production phase begins, or
(b)
if earlier, at the time of the first receipt by the company of any income from the theatrical production.
(5)
Where the company tax return in which a claim under subsection (1) is made is for an accounting period later than that in which the company begins to carry on the separate trade, the company must make any amendments of company tax returns for earlier periods that may be necessary.
(6)
Any amendment or assessment necessary to give effect to subsection (5) may be made despite any limitation on the time within which an amendment or assessment may normally be made.
(7)
If the company ceases at any time to meet the conditions in section 1217FC(1) (meaning of “production company”) in relation to the production, it is treated as ceasing to carry on the separate trade at that time.