Orchestra Tax Relief: how to make a claim: additional deduction
The OPC should indicate that it is claiming OTR using the software that it is submitting its return with. All returns must be filed online. It should complete the relevant boxes below depending on the version used
Description CT600 Version 2\* Version 3\*
Tax due 86 525
Creative tax credit _ 540
Amount claimed 87 545
Amount payable 89 570
Creative enhanced expenditure _ 665
Film/Creative tax relief 167 n/a
Enhanced expenditure 101 670
Payable creative tax credit 168 885
Please note that Version 1 does not provide the relevant boxes needed to claim OTR.
An OPC incurs total expenditure of £250k on a qualifying production. Of this expenditure, £200k is core expenditure. £150k (75%) of that core expenditure is EEA expenditure and £50k (25%) is non-EEA expenditure. The company is entitled to the following deductions:
- £250k ‘ordinary’ deduction, plus
- £150k additional deduction (the core EEA expenditure is less than 80% of £250k, so it all qualifies
Giving a total deduction of £400k.
The figure that should be entered in box 101 or 665 (the ‘enhanced expenditure figure’ referred to in the Notes) is £150k.
The tax credit
If the company is claiming payable Orchestra Tax Credit (OTC), then it should enter the gross amount of the tax credit before any payment of tax is due in the relevant boxes as above.