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HMRC internal manual

Television Production Company Manual

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HM Revenue & Customs
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Claims: how relief is claimed

Television Tax Relief (TTR) is a Corporation Tax relief. It is claimed for each relevant accounting period by completing the appropriate section in the Television Production Company’s (TPC’s) Corporation Tax self-assessment submission (CT600). It is included in the relevant section `Information about enhanced expenditure’ and required supplementary information should be included in the TPC’s accounts and computations.

The tax return must be accompanied by either an interim or final certificate, as the case may be, from the Department for Culture, Media & Sport that the programme is British (TPC40030).

Additional deduction

The TPC should indicate that it is claiming TTR using the software that it is submitting its return with. Depending on the version the following boxes should be completed 

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 tax credit                                         168                        885

Boxes 99, 100, 102 and 103 are not relevant to TTR in version 2.

Example

A TPC incurs total expenditure of £450k on a British programme. Of this expenditure, £400k is core expenditure. £300k (75%) of that core expenditure is incurred in the United Kingdom, and £100k (25%) elsewhere. The company is entitled to the following deductions:

  • £450k `ordinary’ deduction, plus
  • £300k additional deduction (the core UK expenditure is less than 80% of £400k, so it all qualifies (TPC55020)).

Giving a total deduction of £750k.

The figure that should be entered in box 101 (the `enhanced expenditure figure’ referred to in the Note to box 101) is £300k.

Payable tax credit

If the company is claiming any payable tax credit, then it should enter the gross amount of the tax credit before any payment of tax is due in the relevant boxes above. .

Interim claims

The legislation allows relief to be claimed on an interim basis, assuming that the required conditions have been met. A programme may or may not have a strict budget, but where one is available it should be clear whether criteria are going to be met.

Certain of the conditions which determine entitlement to relief or the amount of relief can only be met with certainty once the programme has been completed. This includes the criteria for:

  • British programmes (TPC40030),
  • required minimum amount of UK expenditure (TPC40040), and
  • relevant programmes (TPC40050).

For a programme to be a British programme it must be certified as such by the Department for Culture, Media & Sport (DCMS) (TPC40030). Certification will depend on who is involved in the production and where the programme is made. Although the initial plan may be to make a programme which qualifies as British, changes in response to circumstances (such as the unavailability of a lead actor) may mean that the eventual programme does not.

Similarly, if a programme has estimated core expenditure close to the minimum of £1 million per hour of slot time, it may be that on completion the core expenditure related to the programme is less than required. This would mean that the programme would not qualify as a relevant programme for the purposes of Part 15A Corporation Tax Act 2009 (TPC40050).

If any of the conditions are not actually met on completion of the programme, then the position is adjusted to reflect the outcome. In cases where the payable tax credit has been claimed, this will be repayable to HMRC. Interest will by chargeable on this amount but provided that no careless or deliberate error has been made, no penalty will usually be charged.

Supplementary Information

Claims should be supported by certain additional information. There are two cases with differing requirements:

  • programmes which are completed within a single accounting period, and
  • programmes whose production takes more than one period.

Each of these cases is covered at TPC60020.