TTR55100 - Calculation: surrenderable losses and Theatre Tax Credit

S1217K, S1217KA Corporation Tax Act 2009 (CTA 2009)

A Theatrical Production Company (TPC) has the option of claiming Theatre Tax Relief (TTR) as a payable Theatre Tax Credit (TTC) direct from HMRC.  It can do so in any period in which it has a surrenderable loss.

The TPC may surrender all or part of its surrenderable loss.

The amount of the surrenderable loss

The amount of the surrenderable loss for any accounting period is the lesser of:

  • the amount of the TPC's available loss for the accounting period in the separate theatrical trade, and
  • the available qualifying expenditure for that period.

The TPC's available loss is the sum of the loss for the period plus any relevant unused loss brought forward.

The relevant unused loss brought forward is any available loss for previous periods not set against profits of the separate theatrical trade nor surrendered for TTC.

The available qualifying expenditure is the enhanceable expenditure (TTR55020) to date less the total amount, if any, previously surrendered.

The amount of Theatre Tax Credit

The amount of the payment is the TTC rate multiplied by the amount of loss surrendered.

For periods up to 31 March 2025, the TTC rate is:

  • 25% for touring productions
  • 20% for non-touring productions

Unless the temporary uplifted rates apply (see TTR10800).

Fpr periods from 1 April 2025, the rate is:

  • 45% for touring productions
  • 40% for non-touring productions

Please see TTR10800 for more information, including how to apply the rates for periods covering the transition date of 1 April 2025.