Theatre tax relief

Theatre Tax Relief (TTR) came into effect on 1 September 2014. It means that theatre companies – and theatre charities that are constituted as companies – can claim a tax credit (i.e. an actual payment) from HMRC equal to 20% of eligible costs of theatre production. Claims can be made for the year ended 31 March 2015.

  • Eligible costs are all costs of production until the first night – from the first night, costs are classified as running costs and are not eligible. This includes recharges of management and administration costs, but not financial and marketing costs.
  • The “theatre trade” needs to make a loss. However in calculating the profit or loss of the “theatre trade” in the charity’s accounts you can exclude grant income that is not related to a specific production.
  • To claim TTR the charity needs to submit for Corporation Tax Return (CT600) with a computation of the TTR claim.
  • HMRC guidance has not yet been published; but some companies have already successfully made claims for the March 2015 year ends.

Please get in touch if you would like us to help you prepare a claim.

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