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HMRC internal manual

Theatre Tax Relief

HM Revenue & Customs
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Eligible expenditure: EEA expenditure: goods

S1217GB and S1217GC Corporation Tax Act 2009

The amount of Theatre Tax Relief (TTR) to which a Theatrical Production Company (TPC) is entitled in respect of a separate theatrical trade is determined by the amount of core expenditure (TTR50010) that is EEA expenditure.

Goods are provided from within the EEA if they are supplied within the EEA.

The location at which the goods are used in producing or closing the production is irrelevant for determining whether or not the expenditure on them is EEA expenditure.

Example 1

Set building equipment and materials are purchased by a TPC from a supplier within the EEA.  The expenditure incurred on the equipment and materials is EEA expenditure for TTR purposes irrespective of where in the world the TPC constructs the set and/or the live performances of the production take place.

Example 2

A TPC purchases some material for costumes from a Chinese company specifically for a theatrical production in the UK.  The expenditure incurred on the material is not EEA expenditure, despite the fact that it will be used within the EEA, because the material has been supplied from outside the EEA.