TTR50050 - Eligible expenditure: European expenditure

S1217GB and S1217GC Corporation Tax Act 2009

Note: for accounting periods ending on or after 1 April 2024, the amount of additional deduction is no longer based on the amount of qualifying expenditure that is also European expenditure. Instead, it is based on the amount of qualifying expenditure that is also UK expenditure. The minimum amount of UK expenditure required is 10% of core expenditure. Please see TTR50080 and TTR40040. The following guidance applies to accounting periods ending before 1 April 2024.

The amount of Theatre Tax Relief (TTR) to which a Theatrical Production Company (TPC) is entitled in respect of a theatrical production is determined by the amount of core expenditure (TTR50010).  At least 25% of this expenditure must be 'European expenditure': expenditure incurred in respect of qualifying goods and services that are provided from within the United Kingdom or European Economic Area (EEA).

The EEA includes European Union (EU) countries and also Iceland, Liechtenstein and Norway.

The EU countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.

Switzerland is neither an EU or EEA member.

In order to determine whether core expenditure is European expenditure it is necessary to establish if:

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

These issues are explored further at:

TTR50060 - European expenditure: services
TTR50070 - European expenditure: goods
TTR50110 - Apportionments: just and reasonable