TTR55020 - Calculation: maximum amount of core expenditure subject to claim
S1217J Corporation Tax Act 2009
The amount of Theatre Tax Relief (TTR) available is based on the European core expenditure of each separate theatrical trade. The Theatrical Production Company (TPC) will receive an additional deduction of up to 80% of the total core expenditure incurred on the production.
A TPC can claim TTR on the lower of:
- 80% of total core expenditure, and
- the actual European core expenditure incurred.
European core expenditure is the amount of core expenditure (TTR50010) incurred by the TPC which is also European expenditure (TTR50050). European expenditure is expenditure on goods or services that are provided from within the UK or EEA.
If non-European core expenditure is not more than 20% of total core expenditure, it will have no bearing on the amount of TTR a TPC can claim.
The amount on which the TPC is entitled to claim an additional deduction under TTR is termed enhanceable expenditure.
Example 1: core expenditure all European
A TPC incurs £2m of core expenditure on a production, all of it on goods or services that are provided from within the UK or EEA.
Actual European core expenditure more than 80% of total core expenditure.
The TPC can claim TTR on 80% x total core expenditure. The additional deduction is therefore £1.6m.
Example 2: core expenditure part European and part non-European
A TPC incurs £4m of core expenditure on a production, of which £2.5m is European expenditure. The remainder is incurred on goods or services that are provided from within the USA and is therefore non-European expenditure.
Actual European core expenditure is less than 80% of total core expenditure.
The TPC can claim TTR on actual European core expenditure. The additional deduction is therefore £2.5m.