Claims: how relief is claimed
Theatre Tax Relief (TTR) is a Corporation Tax relief. It is claimed for each relevant accounting period by completing the appropriate section in the Theatrical Production Company’s (TPC’s) Corporation Tax self-assessment submission (CT600). The TPC must complete the relevant section titled ‘Information about enhanced expenditure’ and provide supplementary information within their accounts and computations.
A list of recognised suppliers that provide software for tax returns and supplementary pages is available at Corporation Tax: commercial software suppliers (GOV.UK).
Questions about the software being used should be directed to the software or service provider.
The TPC should indicate that it is claiming TTR using the software that it is submitting its return with. All returns are now expected to be filed online. The relevant boxes to complete are as detailed below depending on the return version used.
Description CT600 Version 2\* Version 3\*
Tax due 86 525
Creative tax credit _ 540
Amount claimed 87 545
Amount payable 89 570
Creative enhanced expenditure _ 665
Film/Creative tax relief 167 n/a
Enhanced expenditure 101 670
Payable creative tax credit 168 885
Boxes 99, 100, 102 and 103 in version 2 are not relevant to TTR.
A TPC incurs total expenditure of £450k on a qualifying production. Of this expenditure, £400k is core expenditure. £300k (75%) of that core expenditure is EEA expenditure and £100k (25%) is non-EEA expenditure. The company is entitled to the following deductions:
- £450k ‘ordinary’ deduction, plus
- £300k additional deduction (the core EEA expenditure is less than 80% of £400k, so it all qualifies (TTR55020)).
Giving a total deduction of £750k.
The figure that should be entered in box 101 (the ‘enhanced expenditure figure’ referred to in the Note to box 101) is £300k.
Theatre Tax Credit
If the company is claiming payable Theatre Tax Credit (TTC), then it should enter the gross amount of the tax credit before any payment of tax is due in the relevant boxes as above.
Claims should be supported by certain additional information. There are two cases with differing requirements:
- productions which are completed within a single accounting period, and
- productions that span more than one period.
Each of these cases is covered at TTR60020.