TTR10140 - Overview and general definitions: meaning of 'UK expenditure' and 'European expenditure'

S1217GB Corporation Tax Act 2009

UK expenditure

For the purposes of Theatre Tax Relief (TTR), 'UK expenditure' on a production means expenditure on goods or services that are used or consumed in the United Kingdom. The test looks not at where expenditure is incurred but at where the good or service is actually used or consumed.

Where it is necessary to apportion any expenditure on services between UK and non-UK expenditure, the apportionment must be made on a just and reasonable basis.

See TTR50080 for further details.

European expenditure

For the purposes of TTR, 'European expenditure' on a production means expenditure on goods or services that are provided from within the United Kingdom or European Economic Area (EEA).

Goods or services are provided from within the United Kingdom or European Economic Area if:

• the goods are supplied from within the UK/EEA, or
• any services are carried out within the UK/EEA.

Where it is necessary to apportion any expenditure on services between European and non-European expenditure, the apportionment must be made on a just and reasonable basis.

See TTR50050 onwards for further details.

Transition rules

From 1 April 2024, qualifying expenditure is based on UK expenditure instead of European expenditure. See TTR50090 for the transition rules which apply to productions which straddle 1 April 2024.