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HMRC internal manual

Theatre Tax Relief

Claims: payment of Theatre Tax Credit

S1217KB Corporation Tax Act 2009

Set off against other liabilities

Where a Theatrical Production Company (TPC) claims a Theatre Tax Credit (TTC) it is entitled to, it must be paid to it unless:

  • the TPC owes Corporation Tax then the credit and any repayment interest due to the company may be used to offset the liability, or
  • if the TPC has outstanding or purported liabilities for PAYE, deductions under S966 Income Tax Act 2007 (visiting performers) or Class 1 National Insurance contributions for the period for which the credit is owed, the payment may be withheld, or
  • if the TPC’s Corporation Tax Return for the period in question is enquired into by HMRC then the payment may be withheld.  A provisional partial payment may be made if appropriate
  • S130 FA 2008 also allows HMRC to set off a credit against any existing debit irrespective of whether or not the payment period falls within the accounting period.

Repayment interest

Payment of TTC will carry interest from the later of:

  • the filing date for the TPC’s tax return for the period in relation to which the credit is payable, and
  • the date on which the tax return (or amended return) in which the claim is included was submitted to HMRC.