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HMRC internal manual

Theatre Tax Relief

Eligible expenditure: ineligible expenditure: examples

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).

Completion bond and other forms of insurance

Completion bonds are a form of insurance against the risk that a production may not be completed. Costs of the completion bond do not qualify for TTR.  They are not incurred on theatre production activities.

Expenditure on other forms of insurance, more directly concerned with the theatre production activity itself, may qualify.  These will be insurance costs that are allowable core expenditure and also EEA expenditure.  So insurance expenditure related to individuals or equipment during the production or closing phases of a theatrical production will be eligible expenditure provided it is also EEA expenditure.

Development costs

See TTR50120 - these costs are not items of core expenditure.

Running costs

The ordinary running costs incurred on or after the first performance of the production to the paying general public or for education purposes are not core expenditure.


Costs related to hospitality and entertainment are disallowable under normal rules.

Publicity and promotion

Publicity and promotional costs do not qualify for TTR.  They are not concerned with the making of the production.

Audit and accountancy fees

Audit fees do not relate to theatrical production activities. They do not qualify for TTR.

Accountancy fees may qualify for TTR if the accounting activities directly relate to producing the production.

Storage costs

Cost of storing costumes or sets etc. do not directly relate to theatrical production activities.  They do not qualify for TTR.

Bank interest and charges

While interest itself is regarded as part of the costs of financing a production, and therefore not incurred on theatrical production activities, charges incurred by banks for facilities that are needed by the TPC to engage in theatrical production activities are part of the costs of production. This includes charges associated with the maintenance of a current account from which suppliers, cast and crew can be paid.