TTR60070 - Claims: payment of Theatre Tax Credit

S1217KB Corporation Tax Act 2009

Set off against other liabilities

Where a Theatrical Production Company (TPC) claims a Theatre Tax Credit (TTC) it is entitled to, it must be paid to it unless:

• the TPC owes Corporation Tax then the credit and any repayment interest due to the company may be used to offset the liability
• the TPC has outstanding or purported liabilities for PAYE, deductions under S966 Income Tax Act 2007 (visiting performers) or Class 1 National Insurance contributions for the period for which the credit is owed, in which case the payment may be withheld
• the TPC's Corporation Tax Return for the period in question is enquired into by HMRC, then the payment may be withheld.  A provisional partial payment may be made if appropriate
• the TPC is in administration or liquidation, in which case the payment may be withheld (applies only to claims made on or after 1 April 2024)

S130 FA 2008 also allows HMRC to set off a credit against any existing debit irrespective of whether or not the payment period falls within the accounting period.

Repayment interest

Payment of TTC will carry interest from the later of:

• the filing date for the TPC's tax return for the period in relation to which the credit is payable, and
• the date on which the tax return (or amended return) in which the claim is included was submitted to HMRC.