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Theatre Tax Relief :

Theatre Tax Relief

Theatre Tax Relief is a government initiative that provides funding for producing a play, opera, musical, ballet or other dramatic piece that tells a story.  Theatre Tax Relief is currently worth up to 36% of core production costs and 40% if your production is touring.

HMRC manages the scheme, and claims are made as part of the Company Tax Return submission.

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Theatre Tax Relief

Guide Overview

Below are six simple sections to help you understand what Theatre Tax Relief (TTR) is, how it works and whether you’re eligible.

What is Theatre Tax Relief (TTR)?
Am I eligible for Theater Tax Relief?
The TTR claims process
FAQs

What is Theatre Tax Relief (TTR)?

Theatre Tax Relief (TTR) is a creative industry tax relief incentive, funded by the UK government.

TTR offers Theatre Production Companies (TPCs) a tax rebate against the money spent on the production of the theatrical piece.

What is Theatre Tax Relief (TTR)
How much TTR can I claim

How much TTR can I claim?

Theatre Tax Relief is currently worth up to 40% of the core production costs of the piece. TPCs can claim TTR on the lower of:

  • 80% of the total core expenditure
  • The actual EEA core expenditure incurred

If the company is profitable, the tax relief can be used to reduce a Corporation Tax bill. If loss-making, claimants can receive a cash payment from HMRC.

Am I eligible for Theatre Tax Relief?

To qualify for TTR, you need to meet the following criteria:

  1. Your company must perform a play, opera, musical or dramatic piece (where the performers are live and play roles) or a ballet.
  2. Your company must be responsible for the production and creative and technical decision-making.
  3. At least 25% of your core production costs must be in the UK or the European Economic Area (EEA).
  4. All or a high majority of performances are for paying members of the public or provided for educational purposes.

There are several conditions to these criteria, so it’s best to contact us and see what we can do to help.

Am I eligible for Theatre Tax Relief
What costs can be claimed for Theatre Tax Relief

What costs can be claimed for Theatre Tax Relief?

The qualifying costs are referred to as core expenditures.  This generally includes the expenditure on:

  • Producing the production
  • Exceptional running costs
  • Closing the production

What is the Theatre Tax Relief (TTR) claims process?

Theatre Tax Relief is claimed as part of the Company Tax Return (CT600) that is filed with HMRC. To make a TTR claim, you’ll need to be a registered UK company, and you must provide the following information:

  • Title of the production
  • Start date of the production
  • Analysis of the separate exhibition trade expenditure, this should include statements that show your core expenditure, broken down by category and by EEA and Non-EEA spending.
  • To claim the touring rate, you must also provide the number of performances at each premises.

You’ll need to calculate if your production has made a profit or a loss and determine whether your TTR claim should be surrendered as a loss for a cash repayment or used to reduce your tax bill.

HMRC has a specific approach for calculating the taxable profit and loss of a Theatre Production Company (TPC).

To qualify as a touring production and benefit from the higher rate of 25%, at least one of the following must apply;

  • At the start of the production phase, you must intend to have performances at six or more separate premises.
  • There will be at least 14 performances, and these will be on at least two separate premises.
Whats the process to claim R&D Tax Credits
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Our results

  • Confident in delivering value to our clients, we offer our TTR services on a success fee-only basis.
  • We handle your TTR claim from start to finish, intending to take up as little of your time as possible.
  • Our expert consultants can identify all of your qualifying projects and all your eligible expenses, including costs often missed by accountants and in-house teams.

Frequently asked questions

Non-core expenditure typically relates to the running and promotional costs for the show. This includes:

  • Non-producing activities include financing, marketing, legal services, and storage.
  • Ordinary running activities.
  • Exploiting the production.

There are two standard rates of Theatre Tax Relief available.

  • Non-touring productions can claim back 20% of qualifying expenditure.
  • If your production is touring, you can claim back 25% of qualifying expenditure.

Theatre production companies can claim TTR on the lower of:

  • 80% of total core expenditure, or;
  • The amount of core expenditure on goods or services that are provided from the EEA.

To qualify for Theatre Tax Relief, your company must:

  • Be actively responsible for producing, running and closing the production;
  • Make an effective creative, technical and artistic contribution to the production;
  • Directly negotiate, contract and pay for rights, goods and services in relation to the production;
  • Be able to submit a full corporation tax return (CT600), although you do not need to be paying corporation tax relief.

There is no cap on the amount of relief available via Theatre Tax Relief. 

To qualify for Theatre Tax Relief, the theatrical production must be considered a dramatic production, i.e., a play, an opera, musical or other dramatic piece where:

  • Actors, singers, dancers or other performers wholly or mainly give their performance by playing a role.
  • Performances are live.
  • Presentation of the live performances is one of the company’s main objectives in relation to the performance.

The production will not be considered a theatrical performance if:

  • One of its primary purposes is to advertise or promote any goods or services.
  • The performances are to consist of or include a competition or contest.
  • A wild animal is to be used in any performance.
  • The production is of a sexual nature.
  • The main goal of the production is to film it.
  • The production has been produced for training purposes.

Does your business qualify?

Speak to our experts today to see if your activities qualify.

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Is your business registered for Corporation Tax in the UK or are you a partnership with corporate owners?

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Have you developed new or improved existing products, processes or services in the last 2 accounting periods?

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Have you incurred any R&D costs on staff, contractors and consumables?

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Does your business have fewer than 500 staff, and either: A turnover of no more than €100 million; or Gross assets of no more than €86 million?

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Sorry, you must be a UK limited company or be a Partnership with corporate owners to be eligible for R&D tax credits.

In order to qualify for R&D tax credits you must be seeking to advance science or technology within your industry. As you’ve not developed any new or improved any existing innovative tools, products or services, and not re-developed any existing products, processes or services in the last 2 years. It is unlikely you have any qualifying activity. If you’re unsure, email or call us and we’ll help clarify.

In order to claim R&D tax credits, you need to either employ staff or spend money on contractors, consumable items and other items. If you’re unsure, email or call us and we’ll help clarify.

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Congrats!! Based on your previous answers, you will qualify for the SME scheme. If you’d like some help maximising and securing your claim, please email or call us.

Congrats!! Based on your previous answers, you will qualify for the RDEC scheme. If you’d like some help maximising and securing your claim, please email or call us.

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