OTR20020 - 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 | Version 2 box name | Version 3 box name |
|---|---|---|
| Tax due | 86 | 525 |
| Creatives tax credit | - | 540 |
| Amount claimed | 87 | 545 |
| Amount payable | 89 | 570 |
| Creatives core expenditure (not supported by all software) | - | 663 |
| Creatives additional deduction | - | 665 |
| Film/Creative tax relief | 167 | n/a |
| Enhanced expenditure | 101 | 670 |
| Payable creatives tax credit | 168 | 885 |
Please note that Version 1 does not provide the relevant boxes needed to claim OTR.
The company should also tick boxes 650 and 658 to confirm that it has completed an additional information form. These boxes are in Version 3 only. Some software does not include them.
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 UK expenditure and £50k (25%) is non-UK expenditure. The company is entitled to the following deductions:
- £250k 'ordinary' deduction, plus
- £150k additional deduction (the core UK 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 663 (if it is supported by the software used) is the core expenditure, £200k. The figure that should be entered in box 101 or 665 is the additional deduction, £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.