17Temporary increase in theatre tax creditU.K.
(1)This section applies where—
(a)a company’s activities in relation to a theatrical production are treated for corporation tax purposes as a trade separate from any other activities of the company by virtue of section 1217H of CTA 2009 (claim for additional deduction), and
(b)the production phase for the theatrical production begins on or after 27 October 2021.
(2)In relation to the separate theatrical trade and an accounting period beginning on or after 27 October 2021 and ending on or before 31 March [F12025], section 1217K(4) of CTA 2009 (amount of theatre tax credit) has effect as if—
(a)in paragraph (a), for “25%” there were substituted “50%”, and
(b)in paragraph (b), for “20%” there were substituted “45%”.
(3)In relation to the separate theatrical trade and an accounting period beginning on or after 1 April [F22025] and ending on or before 31 March [F22026], section 1217K(4) of CTA 2009 (amount of theatre tax credit) has effect as if—
(a)in paragraph (a), for “25%” there were substituted “35%”, and
(b)in paragraph (b), for “20%” there were substituted “30%”.
(4)For the purposes of Part 15C of CTA 2009 (theatrical productions), where the company has an accounting period which begins before, but ends on or after, 27 October 2021, 1 April [F32025] or 1 April [F32026] (a “straddling period”)—
(a)so much of the straddling period as falls before the date in question, and so much of that period as falls on or after that date, are to be treated as separate accounting periods, and
(b)any amounts brought into account for the purposes of calculating for corporation tax purposes the profits of a trade for a straddling period are to be apportioned to the two separate accounting periods on a just and reasonable basis.
Textual Amendments
F1Word in s. 17(2) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 14(1)(a)
F2Words in s. 17(3) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 14(2)(a)
F3Words in s. 17(4) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 14(3)(a)