TTR55010 - Calculation: introduction

Theatre Tax Relief (TTR) is only available to Theatrical Production Companies (TPCs) that make qualifying productions.

Qualifying productions

A company meeting the definition of a TPC (TTR10110) is entitled to claim TTR on UK core expenditure (TTR50010) incurred on a production provided that:

  • the production is intended to be performed live before paying members of the general public, or provided for educational purposes (TTR40020)
  • the production is a theatrical production that is not an excluded production (TTR40020), and
  • not less than 10% of the total core expenditure is UK expenditure (TTR40040).

If the TPC is in administration or liquidation, it cannot make a claim at that time, but it can make a claim later if it is no longer in administration or liquidation. HMRC will correct and remove any claims made by companies in administration or liquidation.

Prior to 1 April 2024, relief was based on European expenditure instead of UK expenditure. Please see TTR50050 and TTR50090 for details. Also, the minimum expenditure condition instead required at least 25% of core expenditure to be European expenditure. Please see TTR40040 and TTR40045 for details.

Benefits of TTR: additional deduction and theatre tax credit

A TPC entitled to TTR can claim an additional deduction in computing its taxable profits relating to a separate theatrical trade.  See TTR55020 and TTR55030 for details of how the amount of the additional deduction is calculated.

The additional deduction can:

  • reduce the taxable profits of the separate theatrical trade (so that the company pays less tax), or
  • create or increase a tax loss, which the company can surrender in return for a payable Theatre Tax Credit (TTC) (TTR55100).

TTR only available to companies

TTR is not available to individuals, either alone or within partnerships, or to investors, financial institutions and those whose involvement in theatrical production is confined to providing or arranging finance.

The purpose of targeting the relief exclusively at TPCs is to ensure that Government support is delivered directly to theatrical production and is not used as a means of avoiding tax.  It also ensures that such support is delivered to production activity in its entirety rather than to separate theatrical production activities.

Core expenditure before 1 September 2014

TTR was introduced from 1 September 2014. Only expenditure incurred after this date is eligible for an additional deduction.