TTR50070 - Eligible expenditure: European expenditure: goods

S1217GB and S1217GC Corporation Tax Act 2009

The amount of Theatre Tax Relief (TTR) to which a Theatrical Production Company (TPC) is entitled in respect of a separate theatrical trade is determined by the amount of core expenditure (TTR50010) that is European expenditure. ‘European expenditure’ is expenditure incurred on goods or services provided from within the UK or European Economic Area (EEA).

Goods are provided from within the UK or EEA if they are supplied within the UK or EEA.

The location at which the goods are used in producing or closing the production is irrelevant for determining whether or not the expenditure on them is European expenditure.

Example 1

Set building equipment and materials are purchased by a TPC from a supplier within the EEA. The expenditure incurred on the equipment and materials is European expenditure for TTR purposes irrespective of where in the world the TPC constructs the set and/or the live performances of the production take place.

Example 2

A TPC purchases some material for costumes from a Chinese company specifically for a theatrical production in the UK. The expenditure incurred on the material is not European expenditure, despite the fact that it will be used within the UK or EEA, because the material has been supplied from outside the UK or EEA.