F1PART 15CTheatrical Productions

The separate theatrical trade

1217ICCosts of the production

(1)

References in this Part to the costs of a theatrical production are to expenditure incurred by the company on—

(a)

the activities involved in developing, producing, running and closing the production, or

(b)

activities with a view to exploiting the production.

(2)

This is subject to any provision of the Corporation Tax Acts prohibiting the making of a deduction, or restricting the extent to which a deduction is allowed, in calculating the profits of a trade.

(3)

Expenditure which, apart from this subsection, would be regarded as being of a capital nature only because it is incurred on the creation of an asset (i.e. the theatrical production) is treated as being of a revenue nature. F2(As to other capital expenditure, see section 53 and subsection (2).)