OTR20034 - Orchestra Tax Relief: how to make a claim: additional information form - section 6: production details
Sections 4-6 will unlock depending on which reliefs or credits were chosen in section 3.
Section 6 is required for claims to the cultural reliefs – theatre, orchestra and museums & galleries exhibition tax relief. If the company is making a claim for any of the audio-visual tax reliefs, or the expenditure credits, then they may also need to complete sections 4 or 5.
Cultural relief projects – information about specific productions
For each individual production being claimed, the following information must be provided. The form will cycle through these questions in a loop until every production has been entered.
Production name
This should be the current name of the production.
Start date of the production phase
This is the date on which the theatrical production, orchestral concert or exhibition enters production. This should be the date at which point the production has been given the green light to go ahead. It does not include any early period where speculative work is being undertaken and a decision is still to be made as to whether or not the production will go ahead. Please see OTR60020 for more information about the phases of production.
Production status
This is the status of the production at the end date of the accounting period covered by the form, and should not reference any progress made after this date. There are three options:
- ongoing (where the production is still in development but is not yet complete)
- complete
- abandoned
If the production has been abandoned, the form will ask for the date of abandonment. HMRC considers a theatrical production, orchestral concert or exhibition to be complete once the work to produce it has ended and it has entered the running phase. The production does not need to have closed down/ended its run to be complete.
Date of the opening night
Touring schedule details, if you intend to claim the touring rate for a production
These can either be entered into a text box in the form, or uploaded as a separate document.
The date of any concert series elections
Details of connected party transactions
Expenditure incurred on connected party transactions will only qualify for relief if the transactions are disclosed to HMRC. The only way to disclose such transactions is by completing this step of the additional information form, for the accounting period in which that expenditure has been brought into account.
The applicant must set out the number of different connected persons with whom the company has made transactions during the period, and the total value of all the connected party transactions in the period. They must then attach a document that lists out the following information for each transaction:
Name of connected party
Date of transaction
Amount of expenditure
Description of goods/services provided
In some cases, it will be acceptable to bundle multiple transactions of the same type, such as secondment of multiple employees paid at the same rate. A company should only bundle transactions together if it is reasonable to do so. HMRC may ask for a more detailed breakdown of transactions if needed, so companies should still make sure to keep a good record of all transactions with connected parties.
Payments to connected parties must be made in accordance with the arm’s length principle. Please read our guidance on the connected party transaction rules (OTR70015) for more information.
Expenditure reporting
After completing specific questions for every individual production, this sub-section then asks for expenditure totals for each type of relief or credit being claimed. This means that if the company is claiming for multiple productions in the same category, the company must add up the figures for all those productions to arrive at the amounts required by the form.
For example, if a company is claiming theatre tax relief on three theatrical productions and also orchestra tax relief on a concert series, then this section must be run through twice: once for the theatrical production totals, and once for the orchestral concert totals.
The following are required for each type of relief:
Calculations upload
This is an opportunity for companies to upload the remaining mandatory supporting evidence:
a computation showing how the amount of additional deduction and tax credit has been calculated for each production
a breakdown of production expenditure for each production, showing the distinction between core/non-core expenditure, UK/non-UK expenditure, and any excluded expenditure.
For the expenditure breakdown, 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 can provide further advice if needed.
HMRC has produced templates which companies can complete and submit to help them with this requirement. These templates can be downloaded through the form itself, or obtained by emailing creative.industries@hmrc.gov.uk or the BFI.
Some productions will use European expenditure in place of UK expenditure. Please see OTR60070 to see if this applies.
Total expenditure for the period
The total expenditure for the period is the amount of costs that have been brought into account for the period when calculating the profits of the trade. It will include both core and non-core costs, and both UK and non-UK expenditure.
The applicant should calculate this amount for all productions claiming under the expenditure credit category and add them together to give a combined total.
Total core expenditure for the period
This should be the amount of relevant production expenditure brought into account for the period. It includes both UK and non-UK expenditure (or European and non-European, as appropriate). Core expenditure is expenditure on producing the concert or series up to performance, and travel to and from a venue that is not the usual venue of the company (OTR60010).
The applicant should work out this amount for all productions claiming under each type of relief (i.e. theatre, orchestra or museums & galleries exhibitions) and add them together to give a combined total per relief type.
Total UK core expenditure for the period
This box requires the amount of relevant production expenditure brought into account for the period that is also UK expenditure. UK expenditure is expenditure on goods and services used or consumed in the UK (OTR60060).
A breakdown between core and non-core expenditure, and also between UK and non-UK expenditure, on an individual production level should have already been attached to the form.
The applicant should work out this amount for all productions claiming under each type of relief and add them together to give a combined total per relief type.
Some productions will use European expenditure in place of UK expenditure. Please see OTR60070 to see if this applies.
Additional deduction for the period
This is the amount of additional deduction the company is claiming under the relevant cultural relief for the period. The additional deduction is the lesser of:
UK expenditure
80% of the total core expenditure
Where the production is taking place over multiple accounting periods, these figures are cumulative and the figures incurred to date should be compared (OTR70040).
The applicant should work out this amount for all productions claiming under each type of relief and add them together to give a combined total per relief type.
Some productions will use European expenditure in place of UK expenditure. Please see OTR60070 to see if this applies.
Amount of loss surrendered
This is the amount of loss that the company is surrendering in return for a tax credit.
The applicant should work out this amount for all productions claiming under each type of relief and add them together to give a combined total per relief type.
Total amount of tax credit claimed
This is the amount of credit that the company is claiming in exchange for its surrenderable losses. It may not be the amount actually payable, as this is the amount before set-off against any other liabilities of the company.
The applicant should work out this amount for all productions claiming under each type of relief and add them together to give a combined total per relief type.