TTR55020 - Calculation: maximum amount of core expenditure subject to claim
S1217J Corporation Tax Act 2009
The amount of Theatre Tax Relief (TTR) available is based on the UK core expenditure of each separate theatrical trade. The Theatrical Production Company (TPC) will receive an additional deduction of up to 80% of the total core expenditure incurred on the production.
A TPC can claim TTR on the lower of:
- 80% of total core expenditure, and
- the actual UK core expenditure incurred.
UK core expenditure is the amount of core expenditure (TTR50010) incurred by the TPC which is also UK expenditure (TTR50080). UK expenditure is expenditure on goods or services that are used or consumed in the UK.
If non-UK core expenditure is not more than 20% of total core expenditure, it will have no bearing on the amount of TTR a TPC can claim.
The amount on which the TPC is entitled to claim an additional deduction under TTR is termed enhanceable expenditure.
Example 1: core expenditure all UK expenditure
A TPC incurs £2m of core expenditure on a production, all of it on goods or services that are used or consumed in the UK.
UK core expenditure more than 80% of total core expenditure.
The TPC can claim TTR on 80% x total core expenditure. The additional deduction is therefore £1.6m.
Example 2: core expenditure part UK and part non-UK
A TPC incurs £4m of core expenditure on a production, of which £2.5m is UK expenditure. The remainder is incurred on goods or services that are used or consumed in the USA and is therefore non-UK expenditure.
UK core expenditure is less than 80% of total core expenditure.
The TPC can claim TTR on actual UK core expenditure. The additional deduction is therefore £2.5m.
European expenditure
Prior to 1 April 2024, European expenditure was used instead of UK expenditure. Please see TTR50050 and TTR50090 for details.