HMRC internal manual

Theatre Tax Relief

Eligible expenditure: core expenditure

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

S1217GC Corporation Tax Act 2009

Expenditure of a separate theatrical trade is that incurred by the Theatrical Production Company (TPC) on developing, producing, running and closing the production (including any pre-trading expenditure on these activities) and on exploiting the production.

Theatre Tax Relief (TTR) is only available on core expenditure that is European expenditure.

Core expenditure is expenditure that is incurred on:

  • producing the production
  • exceptional running costs, and
  • closing the production.

Exceptional running costs may include expenditure incurred by the TPC on or after the date of the first live performance of the production to the paying general public or provided for educational purposes in connection with, for instance, a substantial recasting or a substantial redesign of the set.

Core expenditure does not include costs relating to:

  • developing the production
  • non-producing activities
  • ordinary running activities, and
  • exploiting the production.

Non-producing activities include, for instance, financing, marketing, legal services and storage.

See TTR50050+ for information about what expenditure constitutes European expenditure.