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HMRC internal manual

Orchestra Tax Relief

Orchestra Tax Relief: calculation: surrenderable losses and Orchestra tax credit

S1217RG, S1217RH Corporation Tax Act 2009 (CTA 2009)

An Orchestral Production Company (OPC) has the option of claiming Orchestra Tax Relief (OTR) as a payable Orchestra Tax Credit (OTC) direct from HMRC.  It can do so in any period in which it has a surrenderable loss.

The OPC may surrender all or part of its surrenderable loss.

The amount of the surrenderable loss

The amount of the surrenderable loss for any accounting period is the lesser of:

  • the amount of the OPC’s available loss for the accounting period in the separate orchestral  trade, and
  • the available qualifying expenditure for that period.

The OPC’s available loss is the sum of the loss for the period plus any relevant unused loss brought forward.

The relevant unused loss brought forward is any available loss for previous periods not set against profits of the separate theatrical trade nor surrendered for OTC.

The available qualifying expenditure is the enhanceable expenditure to date less the total amount, if any, previously surrendered.

The amount of Orchestra Tax Credit

The amount of the payment is the OTC rate multiplied by the amount of loss surrendered.

The OTC rate is 25%