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HMRC internal manual

Theatre Tax Relief

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HM Revenue & Customs
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Calculation: touring productions

S1217K Corporation Tax Act 2009

Where a Theatrical Production Company (TPC) claims Theatre Tax Relief (TTR) in respect of enhanceable expenditure (TTR55020) on a touring production the rate of any Theatre Tax Credit (TTC) (TTR55100) is 25% of the amount of the loss surrendered.

A production is a touring production only if the TPC intends at the beginning of the producing phase that it will present live performances of the production in:

  • 6 or more separate premises, or
  • at least two separate premises and the number of performances will be at least 14.

Productions that are not touring productions are referred to in this guidance as non-touring productions.

Intention – no intention to tour at the outset

The status of a production as a touring or non-touring production is determined at the beginning of the producing phase and is not altered by a subsequent change in intention.  For the purposes of establishing an intention to tour, the producing phase is deemed to begin when substantial producing activities commence in relation to the production.  This could be some time after the production has been ‘green lit’.

Intention – intention to tour at the outset but the TPC does not tour the production

If a TPC intended to tour a production at the beginning of the producing phase but, for reasons outside of its control, finds that it does not present live performances of the production in 6 or more separate premises or at least two separate premises for a minimum of 14 performances it may still qualify for the Theatre Tax Credit (TTC) rate for touring productions.  It will need to provide evidence of the intention to tour, for example: contracts, locations and payments for booking premises.  Each case will be considered on its facts.

Premises

The premises must be distinct and separate locations.  It will not be sufficient, say, to move floors in a building and claim that these are separate premises.