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HMRC internal manual

Theatre Tax Relief

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HM Revenue & Customs
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Claims: details to be provided

Single-period productions

Qualifying productions in respect of which the Theatrical Production Company (TPC) is entitled to claim Theatre Tax Relief (TTR) may be completed within a single accounting period.

The claim will be made after completion, and the TPC should generally possess final information on the production’s budget and the extent of EEA core expenditure which it must supply with its tax return submission.

The TPC should supply the following additional information with its tax return submission:

  • the title of the production in respect of which relief is being claimed
  • in order to identify the particular production and demonstrate, where applicable, that the production is a touring production:

- the number and dates of performances presented at each premises

  • in order to demonstrate that the minimum EEA expenditure condition (TTR40040) has been met, final statements of the amounts of:

  • total core expenditure (TTR50010) on the production by the TPC
  • core expenditure on the production by the TPC that is EEA expenditure

  • the  amount of additional deduction claimed (TTR55020)
  • the amount, if any, of loss surrendered for Theatre Tax Credit (TTC).

This is part of the normal self-assessment process, and although the TPC is required to keep adequate records to support its return, it is not specifically required to provide audited figures.

It will assist the processing of claims if TPC could also include:

  • a breakdown of the separate theatrical trade expenditure.  The level of appropriate detail will depend on the size of the budget.  Generally the headings adopted by the production accountant are adequate.  The Creative Industries Unit (contact details at TTR10020) can provide further advice if needed
  • an analysis of that expenditure into:

  • development expenditure
  • other non-production related expenditure
  • core expenditure (producing and closing expenditure): EEA
  • core expenditure (producing and closing expenditure): non-EEA
  • running and exploiting expenditure

  • details of any methods of apportionment and/or assumptions used in producing these figures, and
  • any other information relevant to the claim such as proof that the production is a qualifying theatrical production (script, promotional material, etc)
  • if the separate theatrical trade has ceased, a statement that the TPC has ceased to carry on the separate theatrical trade.

Multi-period productions

Where the making of the production spans more than one accounting period the information required to support any claim is similar to that set out above.  However, the final information may not yet be available.  The company should state:

  • the intended number and dates of performances at each premises
  • the planned total core expenditure on the production by the TPC, and
  • the planned core expenditure on the production by the TPC that is EEA expenditure.

Final figures not available

Where the TPC retains an interest in a production after it closes and may be obliged to make payments related to that production in later periods it may be necessary to estimate the final amounts of core expenditure and core expenditure that is EEA expenditure – see TTR40040 for details of how such future obligations impact on the minimum EEA expenditure condition.