2024 No. 320
Corporation Tax

The Relief for Creative Industries (Additional Information Requirements and Miscellaneous Amendments) Regulations 2024

Made
Laid before the House of Commons
Coming into force
The Commissioners for His Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by paragraph 83WA of Schedule 18 to the Finance Act 19981, section 132 of the Finance Act 19992, section 135 and 136 of the Finance Act 20023 and now exercisable by them4.

Citation and Commencement1.

These Regulations may be cited as the Relief for Creative Industries (Additional Information Requirements and Miscellaneous Amendments) Regulations 2024 and come into force on 1st April 2024.

Additional information to be provided in relation to creative industry claims2.

(1)

A claim under Parts 14A-15E of the Corporation Tax Act 20095 is invalid unless the information specified in Table 1 of the Schedule (Required information relating to all creative sector relief claims) is provided to an officer of Revenue and Customs not later than the date on which the claim is made or amended by the company in accordance with paragraph 83W of Schedule 18 of the Finance Act 1998;

(2)

Where a claim under Parts 14A, 15C, 15D or 15E of the Corporation Tax Act 2009 includes “connected party expenditure”, paragraph (3) applies unless the information specified in Table 2 of the Schedule (Required information relating to connected party transactions) is provided to an officer of Revenue and Customs not later than the date specified in paragraph (1).

(3)

Where this paragraph applies, total qualifying expenditure is to be reduced by the amount of connected party expenditure arising from any transaction that is partly or wholly undisclosed.

(4)

In these regulations—

(a)

“connected party expenditure” means the amount of total qualifying expenditure which represents a payment made to a person who is connected with the company within the meaning of section 1316 of the Corporation Tax Act 2009; and

(b)

“total qualifying expenditure” has the same meaning as “relevant global expenditure” in Step 1 of section 117CA, Part 14A of the Corporation Tax Act 2009 in relation to Audio-Visual Expenditure Credit and Video Games Expenditure Credit, section 1217JA, Part 15C of the Corporation Tax Act 2009 for Theatre Tax Relief, section 1217RF, Part 15D of the Corporation Tax Act 2009 for Orchestra Tax Relief and section 1218ZCG, Part 15E of the Corporation Tax Act 2009 for Museums and Galleries Exhibition Tax Relief.

Amendment of the Income and Corporation Taxes (Electronic Communications) Regulations 20033.

(1)

The Income and Corporation Taxes (Electronic Communications) Regulations 20036 are amended as follows

(2)

In regulation 2 (scope of these Regulations)—

(a)

after paragraph (1) (a) (viii), omit “or”;

(b)

after paragraph (1) (a) (ix), substitute “and” for “or;” and

(c)

after paragraph (1) (a) (ix), insert—

“(x)

paragraph 83WA(1) of Schedule 18 to the Finance Act 1998; and”

(3)

In regulation 3 (use of electronic communication), in paragraph (2A)—

(a)

after “paragraph 83EA”, insert “, or paragraph 83WA”; and

(b)

after the third sentence insert –

“This paragraph also applies to an amendment made on or after 1 April 2024, where the company tax return includes a claim within Parts 14A to 15E of the Corporation Tax Act 2009”.

Jim Harra
Angela MacDonald
Two of the Commissioners for His Majesty’s Revenue and Customs

SCHEDULEAdditional information to be provided in relation to creative claims

Regulation 2

1.

A claim to which Part 9D of Schedule 18 to the Finance Act 1998 (claims for tax relief under Parts 14A to 15E of the Corporation Tax Act 2009) applies must include the information specified in Table 1 in respect of—

(1)

the company (“company” has the same meaning as section 1121 of the Corporation Tax Act 2010);

(2)

the company officer responsible for ensuring the accuracy of the information provided under this Schedule;

(3)

any agent or tax adviser engaged by the company, or which has provided services to the company, in any capacity in relation to the claim;

(4)

the claim; and

(5)

information relating to individual productions.

2.

Claims under Parts 14A, 15C, 15D or 15E of the Corporation Tax Act 2009 relating to connected party transactions must also include the information specified in Table 2.

Table 1 – Required information relating to all creative claims under Parts 14A to 15E of the Corporation Tax Act 2009.

Topic

Specified information

The company

  1. (a)

    accounting period start and end date,

  2. (b)

    registered name,

  3. (c)

    unique taxpayer reference number,

  4. (d)

    VAT registration number (if registered for VAT),

  5. (e)
    employer’s PAYE reference, within the meaning of regulation 2(1) of the Income Tax (Pay as you Earn) Regulations 2003 where applicable7
  6. (f)

    foreign Entertainers Unit reference number where applicable, and

  7. (g)

    details of responsible officer:

    1. (i)

      full name,

    2. (ii)

      telephone number,

    3. (iii)

      e-mail address, and

    4. (iv)

      role in company

Agent(s) or tax adviser(s)

  1. (a)

    name (or, if the agent or adviser is a registered company, its registered name),

  2. (b)

    office address,

  3. (c)

    additional information required when the form is completed by the agent;

    1. (i)

      full name,

    2. (ii)

      telephone number,

    3. (iii)

      e-mail address; and

    4. (iv)

      third party authorisation form or other letter of authority in cases in which this has not already been provided to HM Revenue and Customs.

Details of claim(s)

  1. (a)

    type or types of relief claimed, and

  2. (b)

    number of productions claimed per relief type.

Complete for every individual production

  1. (a)

    name of production,

  2. (b)

    start date of pre-production,

  3. (c)

    date of abandonment if applicable,

  4. (d)

    full relief and/or credit computation expenditure breakdown.

  5. (e)

    for Theatrical productions:

    1. (i)

      date of first paid public performance,

    2. (ii)

      whether a touring rate is being claimed,

    3. (iii)

      touring information, to include the number, date(s) and location(s) of performance(s).

  6. (f)

    for Orchestral productions:

    1. (i)

      date of opening night,

    2. (ii)

      whether a concert series election has been made and if so, the date of the election.

  7. (g)

    for Museums and Galleries Exhibitions:

    1. (i)

      date of opening day,

    2. (ii)

      confirmation of whether the claimant is the primary or secondary production company, and

    3. (iii)

      whether a touring rate is being claimed.

  8. (h)

    for expenditure credits, Film Tax Relief, High-End Television Tax Relief, Children’s Television Tax Relief and Video Games Tax Relief.

    1. (i)

      British Film Institute certificate reference number,

    2. (ii)

      British Film Institute certificate(s), and

    3. (iii)

      reason why the production name does not match the name on the certificate, where applicable.

Per relief type – cultural8 and existing Audio-visual reliefs9
  1. (a)
    core expenditure for the period10,
  2. (b)

    UK or EEA core expenditure for the period,

  3. (c)
    total expenditure for the period11,
  4. (d)
    qualifying expenditure for the period12
  5. (e)
    amount of loss surrendered for the period13,
  6. (f)
    amount of tax credit claimed14.

Per relief type – for each strand of Audio-visual Expenditure Credit separately and Video Games Expenditure Credit

  1. (a)
    core expenditure for the period15,
  2. (b)

    UK core expenditure for the period,

  3. (c)
    total expenditure for the period16; and
  4. (d)
    qualifying expenditure for the period17.

At company level for claims including the Audio-visual Expenditure Credit and/or Video Games Expenditure Credit

  1. (a)
    total combined Audio-Visual Expenditure Credit and Video Games Expenditure Credit credits for the period18;
  2. (b)

    amount of Step 2 brought forward credit in the previous period under section 1179CD(3) Corporation Tax Act 2009 and surrendered Audio-Visual Expenditure Credit and/or Video Games Expenditure Credit received from a company in the same group under Step 4 of section 1179CC, section 1179CD(2) or (5) of the Corporation Tax Act 2009 and used to discharge Corporation Tax liabilities,

  3. (c)

    Steps to be followed;

    1. (i)

      Step 1: Amount of credit used to discharge Corporation Tax liabilities,

    2. (ii)

      Step 2: Amount withheld (if any),

    3. (iii)

      Step 3: Amount used to discharge corporation tax liability of another accounting period,

    4. (iv)

      Step 4: Credit surrendered to group member,

    5. (v)

      Step 5: Amount used to discharge any other company liabilities,

    6. (vi)

      Step 6: Credit payable.

  4. (d)

    Amount withheld at Step 2 and surrendered to other group companies,

  5. (e)

    Expenditure credit redemption calculation.

Table 2 Required information relating to connected party transactions.

Topic

Specified information

Details to be provided for each Production

  1. (a)

    Declaration of connected party transaction(s),

  2. (b)

    Number of connected parties for the period, and

  3. (c)

    Total value of transactions for the period

Details to be provided for each transaction

  1. (a)

    Date of transaction,

  2. (b)

    Name of connected party,

  3. (c)

    Amount of transaction, and

  4. (d)

    Description of goods/services provided.

EXPLANATORY NOTE
(This note is not part of the Regulations)

These Regulations amend the Income and Corporation Taxes (Electronic Communications) Regulations 2003 (S.I. 2003/282) (“the 2003 Regulations”) to require claims for the creative sector tax reliefs to be submitted electronically. These regulations also specify the additional information required to be provided by claimant companies in support of any claims for the creative sector tax reliefs.

Part 9D of Schedule 18 to the Finance Act 1998 deals with claims for the creative sector tax reliefs, which are set out in Parts 14A to 15E of the Corporation Tax Act 2009.

Paragraph 83WA of Schedule 18 to the Finance Act 1998 provides that regulations may specify the information to be provided by the claimant company, the form and the manner in which, and the time by which, that information is to be provided, and the consequences of failing to provide that information. Regulation 2 (1) specifies the information that is required to make a claim for the creative sector tax reliefs, the time by which that information should be provided and the consequences of a failure to provide that information. Regulations 2(2) to 2(4) concerns the additional information that is required to be disclosed where a claim relates to connected party transactions, the time by which that information should be provided and the consequences of a failure to provide that information.

Regulation 3 amends the 2003 Regulations so that the additional information to be provided under paragraph 83WA(1) of Schedule 18 to the Finance Act 1998 and amended returns that relate to a creative sector relief claim must be delivered electronically.