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HMRC internal manual

Orchestra Tax Relief

Orchestra Tax Relief: taxation: separate trade: cessation

S1217PB Corporation Tax Act 2009 (CTA 2009)

Where a company is an Orchestral Production Company (OPC) for the purposes of Part 15D CTA 2009, a qualifying orchestral concert or series is treated as a separate orchestral trade if Orchestral Tax Relief (OTR) is claimed in respect of that concert or series.  This isolates each orchestral concert or series on an individual basis for the purposes of calculating profits and losses.

The point at which this trade starts is determined by special rules but, once set up, the normal rules apply for when a trade ceases, unless the company ceases at any time to be the OPC in relation to the production.

Normal cessation rules

Guidance at BIM70565+ of the Business Income Manual sets out the normal cessation rules.

The question of whether any trade has ceased is a matter of fact.  Where no election is made the trade will cease after the performance of each concert. Where an election is made this will be after the performance of the final concert in the series.

Terminal losses

If a separate orchestral trade ceases, the OPC may be able to use losses under OTR by using the special terminal loss rule