Theatre
Tax Relief
how much you could receive
What Is Theatre Tax Relief?
Everything you need to know
Theatre Tax Relief (TTR) is an incentive designed by the government. It allows both commercial as well as charitable companies to claim tax relief on their Corporation Tax for their dramatic productions, live performances and more (keep reading to find out what productions are eligible).
Theatre Tax Relief is also known as Theatre Tax Credit. By taking advantage of this incentive, your production company is able to reduce pre-production costs by 20-25% regardless of whether you’re profit or loss-making. One of the most advantageous aspects of this incentive, is the fact that even if your company already claims different tax exemptions on Corporation Tax, you can still take advantage of Theatre Tax Relief.
Theatre Tax Relief Eligibility Criteria
Your production must have roles in it that are performed wholly by humans, whether they’re actors, singers, dancers, it does not matter as long as the majority of the production is performed by them.
- The production must be classed as either: a dramatic production, a ballet, play, opera or a musical.
- Your production must be put on for a paying audience or for educational purposes.
- Your expenditure must be at least 25% in European Economic Area (EEA).
- The performances of your production must be live in order to qualify for this incentive.
Your company must be involved in operations, meaning that you must have an input in decision making throughout the duration of the production and pay for:
- Goods
- Rights
- Services
What You Cannot Claim Through Theatre Tax Relief
There are a few limiting factors to the incentive:
- Your production was produced to advertise a product
- If the production plays a part in a competition
- Your company cannot claim if wild animals were included in your production
- Also if your production is of sexual nature
How Much Theatre Tax Relief Can I Claim?
The amount that you can claim is relative to how much you spent on your production or how many productions you’re claiming for. The more expenditure you have, the more of your costs you can claim back. Without looking at the numbers, you are likely to claim back between 20-25% of your ‘core expenditure’ but please bear in mind that there are some limitations on costs made outside of EEA.
What Expenditure Qualifies For Relief?
You can only claim Theatre Tax Relief on your core expenditure. Core expenditure is classed as any expenditure that falls within the creation of the production; this is inclusive of closing the production. There are 4 main phases of putting the production together that help to identify costs that are eligible:
- Your pre-production concept development stage
- Rehearsal and production costs
- Your live performances
- The closing down process
You can only claim for stage one once the production has been approved for rehearsals and production.
You cannot claim for stage three, unless your expenditure involves major set redesign or recasting.
Is A Cultural Test Required?
Make your Tax Relief Claim
COMPLEX TAX INVESTIGATIONS
BOOK A CONSULTATION
Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.
GOT A QUESTION?
If you are looking to action any of these tips in our guide or if have any other queries about tax and planning your finances for your future, our Private Client Tax team are here to help. Get in touch with a member of the team for an initial chat now.
OUR EXPERIENCE
How Does Churchill Tax Handle My Claim?
1. Getting To Know You
2. Evaluating Your Costs
We will request your financials to evaluate your costs and calculate your benefit
3. Writing Your Claim
We will write the claim for you which you can look over before submission to HMRC – you can be as involved in the process of writing your claim as you want to be.
4. Rewards
Receive your benefit in either a reduction in your Corporation Tax liability or a payable credit
WHAT WE OFFER
When appointing a Tax specialist to act on your behalf, it’s important to know that you’re in good hands. You need to know that the advisor you appoint has the experience, skills and courage required to achieve the best possible outcome for you.
Our role is as much about supporting our clients personally as it is about providing professional and effective Tax representation. This is why we have implemented facilities such as flexible payment options , that aim to make the process straight forward and stress free.
Have you received a notification of HMRC investigation?
BOOK A CONSULTATION
Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.