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HMRC internal manual

Orchestra Tax Relief

Orchestras Tax Relief: losses: terminal losses

S1217SC Corporation Tax Act 2009 (CTA 2009)

The rules in Part 15D CTA 2009 modify the normal rules for relieving corporate trading losses.

An Orchestral Production Company (OPC) may transfer or surrender its losses from a separate orchestral trade when that trade ceases.  This is in contrast to the normal rules on terminal losses which must be offset against profits of the same trade arising in the three previous years.

The OPC can, on making a claim, pass losses on to another trade that qualifies for Orchestra Tax Relief (OTR).  The trade must be carried on at the time of cessation and can be:

  • another trade carried on by the same company, or
  • another trade carried on by a different OPC in the same group.


A company is in the same group for these purposes if it is in the same group for group relief purposes (CTM80150 of the Company Taxation Manual).

The losses are treated as losses brought forward to be set against profits of the OTR-qualifying trade for the accounting period that commences after the cessation.

For example, company A claims terminal loss relief under the rules in Part 15D CTA 2009.  It ceases its separate orchestral trade on 31 October 2016.  It surrenders losses to company B which is in the same group and has an ongoing OTR trade.  Company B has a chargeable accounting period ended 30 April 2017.  The losses transferred will be treated as brought forward by company B in the period commencing 1 May 2017.

The new loss provisions from 1 April 2017 will still allow companies to utilise  terminal losses in a similar manner whether they are brought forward under s45 or S45A of CTA 2010