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HMRC internal manual

Theatre Tax Relief

From
HM Revenue & Customs
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Eligible expenditure: non-core expenditure

S1217GC Corporation Tax Act 2009

Theatre Tax Relief (TTR) in respect of a separate theatrical trade by a Theatrical Production Company (TPC) is only available on elements of core expenditure (TTR50010).

Not all expenditure is core expenditure.  Some elements of expenditure will not be core expenditure because they relate to the development, ordinary running or exploitation of the theatrical production or other non-production activities.

For example, the extent to which a script is used as part of the process of establishing the commercial viability of the production is development activity and the proportion of the script costs allocated to that activity will not be core expenditure and therefore will not qualify for TTR.

Expenditure on advertising a theatrical production is not production or closing expenditure and is therefore not core expenditure and will not qualify for TTR.  This would include the costs of producing promotional material for productions.

Expenditure incurred on developing, running and exploiting a theatrical production as well as any expenditure of the separate theatrical trade on activities not directly involved in producing the production, for instance finance, legal or storage costs, will still be included in the taxable profits and losses of the production.  It is simply not eligible for TTR.