TTR60024 - Claims: additional information form - section 6: production details
Sections 4-6 will unlock depending on which reliefs or credits were chosen in section 3.
Section 6 is required for
claims to the cultural reliefs – theatre, orchestra and museums
& galleries exhibition tax relief. If the company is making a claim for any
of the audio-visual tax reliefs, or the expenditure credits, then they will
also need to complete section 4 and/or section 5.
Cultural relief projects – information about specific productions
For each
individual production being claimed, the following information must be
provided. Once these details and the expenditure totals have been provided for
one production, the form gives users the opportunity to add details of further
productions.
- Production name
This should
be the current name of the production.
- Start date of the production phase
This is the
date on which the theatrical production, orchestral concert or exhibition
enters production. This should be the date at which point the production
has been given the green light to go ahead. It does not include any early
period where speculative work is being undertaken and a decision is still
to be made as to whether or not the production will go
ahead. Please see TTR10130 for more information about the phases
of production.
- Production status
This is the
status of the production at the end date of the accounting period covered by
the form. It should not reference any progress made after this date. There
are three options:
- ongoing (where the production is still in development but is not yet
complete)
- complete
- abandoned
If the
production has been abandoned, the form will ask for the date of
abandonment. HMRC considers a theatrical production,
orchestral concert or exhibition to be complete once the work to
produce it has ended and it has entered the running phase. The production does
not need to have closed down/ended its run to be complete.
- Date of
the first public performance
- Touring schedule details, if you intend to claim the touring rate for a production
These must
be uploaded as a separate document and include the number of performances, and
the date and location of each performance.
- Details of connected party transactions
Expenditure incurred on connected party transactions will only qualify for relief if the transactions are disclosed to HMRC. The only way to disclose such transactions is by completing this step of the additional information form, for the accounting period in which that expenditure has been brought into account.
The applicant must set out the number of different connected persons with whom the company has made transactions during the period, and the total value of all the connected party transactions in the period. They must then attach a document that lists out the following information for each transaction:
- Name of connected party
- Date of transaction
- Amount of expenditure
- Description of goods/services provided
In some cases, it will be acceptable to bundle multiple transactions of the same type, such as secondment of multiple employees paid at the same rate. A company should only bundle transactions together if it is reasonable to do so. HMRC may ask for a more detailed breakdown of transactions if needed, so companies should still make sure to keep a good record of all transactions with connected parties.
Payments to connected parties must be made in accordance with the arm’s length principle. Please read our guidance on the connected party transaction rules (TTR55015) for more information.
Expenditure totals
Once the basic
production details for a production have been provided, the user must provide
some expenditure figures for the production. The form asks for the following,
for each production:
- Calculations upload
This is an opportunity for companies to upload the remaining mandatory supporting evidence:
- a computation showing how the amount of additional deduction and tax credit has been calculated for each production
- a breakdown of production expenditure for each production, showing the distinction between core/non-core expenditure, UK/non-UK expenditure, and any excluded expenditure.
For the expenditure breakdown, the level of appropriate detail will depend on the size of the budget. Generally, the headings adopted by the production accountant are adequate. The Creative Industries Unit can provide further advice if needed.
HMRC has produced templates which companies can complete and submit to help them with this requirement. These templates can be downloaded through the form itself, or obtained by emailing creative.industries@hmrc.gov.uk or the BFI.
Some
productions will use European expenditure in place of UK expenditure.
Please see TTR50090 to see if this applies.
- Core expenditure for the period
This should
be the amount of core expenditure brought into account for the period. It
includes both UK and non-UK expenditure (or European and
non-European, as appropriate). Core expenditure is expenditure
on producing the production, exceptional running costs, and closing the
production (TTR50010).
- Core expenditure to date
This is the
amount of core expenditure incurred in all accounting periods up to and
including the period the company is currently claiming for. This amount must
therefore be equal to or more than the core expenditure for the current claim
period. If the user is completing the form for the first accounting period of
the separate production trade, this amount should equal core expenditure for the accounting period, which was entered on the previous page.
- Total UK core expenditure to date
This box requires the amount of core expenditure to date that is also UK expenditure. UK expenditure is expenditure on goods and services used or consumed in the UK (TTR50080).
Some productions will use European expenditure up to 1 April 2024 or 1 April 2025, and UK expenditure after that. Please see TTR50090 to see if this applies.
- Additional deductions for previous periods
The form
will ask if the company has made an additional deduction for the same
production in a previous accounting period. If the answer is yes, the company
must enter the combined value of additional made for all periods up to and
including the most recent period in which it made an additional deduction. It
should not include the additional deduction for the current claim period – the form
calculates that on the following page.
- Additional deduction for the period
This is the amount of additional deduction the company is claiming under the relevant cultural relief for the period. The additional deduction is the lesser of:
- UK expenditure
- 80% of the total core expenditure
Where the production is taking place over multiple accounting periods, these figures are cumulative and the figures incurred to date should be compared (TTR55050).
Some productions will use European expenditure in place of UK expenditure. Please see TTR50090 to see if this applies.
The form calculates
this amount automatically and explains how it has done so. It asks the user to
confirm the result.
- Amount of loss surrendered for the period
This is the amount of loss that the company is surrendering in return for a tax credit for the current claim period. It is the lesser of
- the amount of loss made in the separate production trade after making the additional deduction for the period, and
- the amount of the additional deduction for the period
If the company has still made a profit after making the additional deduction, it should enter a zero.
Because of
recent changes to the rates of credit, some companies will have to enter two
losses for the period, each at a different rate. The form asks for each loss in
turn and explains which part of the accounting period it relates to. See
TTR10800 for more details.
- Amount of tax credit claimed
This is the amount of credit that the company is claiming in exchange for its surrenderable loss. It may not be the amount actually payable, as this is the amount before set-off against any other liabilities of the company. The form calculates this amount automatically and asks the user to confirm the result.
Expenditure totals table
After the user has entered the details for each production the company is claiming for and confirmed their answers, the form will show a table based on the expenditure totals entered or calculated for each production, with the combined totals for all productions in the bottom row. Users should check the figures and calculations carefully and go back and correct their answers if necessary.