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HMRC internal manual

Orchestra Tax Relief

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.  

 

Example

 

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.