|
|
| |
| | |
|
| Amount of additional deduction |
|
| 1217J | Amount of additional deduction |
|
| (1) | The amount of an additional deduction to which a company is |
|
| entitled as a result of a claim under section 1217H is calculated as |
|
| |
| (2) | For the first period of account during which the separate |
|
| theatrical trade is carried on, the amount of the additional |
|
| |
| |
| (a) | so much of the qualifying expenditure incurred to |
|
| date as is EEA expenditure, or |
|
| (b) | if less, 80% of the total amount of qualifying |
|
| expenditure incurred to date. |
|
| (3) | For any period of account after the first, the amount of the |
|
| additional deduction is—![equation: plus[char[E],minus[char[P]]]](missing.gif) |
|
| |
| |
| (a) | so much of the qualifying expenditure incurred to |
|
| date as is EEA expenditure, or |
|
| (b) | if less, 80% of the total amount of qualifying |
|
| expenditure incurred to date, and |
|
| P is the total amount of the additional deductions given for |
|
| |
| (4) | The Treasury may by regulations amend the percentage |
|
| specified in subsection (2) or (3). |
|
| 1217JA | “Qualifying expenditure” |
|
| (1) | In this Part “qualifying expenditure”, in relation to a theatrical |
|
| production, means core expenditure (see section 1217GC) on the |
|
| theatrical production that— |
|
| (a) | falls to be taken into account under sections 1217IA to |
|
| 1217IF in calculating the profit or loss of the separate |
|
| theatrical trade for tax purposes, and |
|
| (b) | is not excluded by subsection (2). |
|
| (2) | The following expenditure is excluded— |
|
| (a) | expenditure in respect of which the company is entitled |
|
| to an R&D expenditure credit under Chapter 6A of Part 3; |
|
| (b) | expenditure in respect of which the company has |
|
| obtained relief under Part 13 (additional relief for |
|
| expenditure on research and development). |
|
| |
| 1217K | Theatre tax credit claimable if company has surrenderable loss |
|
| |
|
| |
|
|
| |
| | |
|
| (a) | is treated under section 1217H(3) as carrying on a |
|
| separate trade during the whole or part of an accounting |
|
| |
| (b) | has a surrenderable loss in that period, |
|
| | may claim a theatre tax credit for that accounting period. |
|
| (2) | Section 1217KA sets out how to calculate the amount of any |
|
| surrenderable loss that the company has in the accounting |
|
| |
| (3) | A company making a claim may surrender the whole or part of |
|
| its surrenderable loss in the accounting period. |
|
| (4) | The amount of the theatre tax credit to which a company making |
|
| a claim is entitled for the accounting period is— |
|
| (a) | 25% of the amount of the loss surrendered if the theatrical |
|
| production is a touring production, or |
|
| (b) | 20% of the amount of the loss surrendered if the theatrical |
|
| production is not a touring production. |
|
| (5) | The company’s available loss for the accounting period (see |
|
| section 1217KA(2)) is reduced by the amount surrendered. |
|
| (6) | A theatrical production is a “touring production” only if the |
|
| company intends at the beginning of the production phase— |
|
| (a) | that it will present performances of the production in 6 or |
|
| more separate premises, or |
|
| (b) | that it will present performances of the production in at |
|
| least two separate premises and that the number of |
|
| performances will be at least 14. |
|
| (7) | See Schedule 18 to FA 1998 (in particular, Part 9D) for provision |
|
| about the procedure for making claims under subsection (1). |
|
| 1217KA | Amount of surrenderable loss |
|
| (1) | The company’s surrenderable loss in the accounting period is— |
|
| (a) | the company’s available loss for the period in the |
|
| separate theatrical trade (see subsections (2) and (3)), or |
|
| (b) | if less, the available qualifying expenditure for the period |
|
| (see subsections (4) and (5)). |
|
| (2) | The company’s available loss for an accounting period is—![equation: plus[char[L],times[char[R],char[U],char[L]]]](missing.gif) |
|
| |
| L is the amount of the company’s loss for the period in the |
|
| separate theatrical trade, and |
|
| RUL is the amount of any relevant unused loss of the |
|
| company (see subsection (3)). |
|
| (3) | The “relevant unused loss” of a company is so much of any |
|
| available loss of the company for the previous accounting period |
|
| |
| (a) | surrendered under section 1217K, or |
|
|
| |
|
|
| |
| | |
|
| (b) | carried forward under section 45 of CTA 2010 and set |
|
| against profits of the separate theatrical trade. |
|
| (4) | For the first period of account during which the separate |
|
| theatrical trade is carried on, the available qualifying |
|
| expenditure is the amount that is E for that period for the |
|
| purposes of section 1217J(2). |
|
| (5) | For any period of account after the first, the available qualifying |
|
| expenditure is—![equation: plus[char[E],minus[char[S]]]](missing.gif) |
|
| |
| E is the amount that is E for that period for the purposes of |
|
| |
| S is the total amount previously surrendered under section |
|
| |
| (6) | If a period of account of the separate theatrical trade does not |
|
| coincide with an accounting period, any necessary |
|
| apportionments are to be made by reference to the number of |
|
| days in the periods concerned. |
|
| 1217KB | Payment in respect of theatre tax credit |
|
| |
| (a) | is entitled to a theatre tax credit for an accounting period, |
|
| |
| |
| | the Commissioners for Her Majesty’s Revenue and Customs |
|
| (“the Commissioners”) must pay the amount of the credit to the |
|
| |
| (2) | An amount payable in respect of— |
|
| (a) | a theatre tax credit, or |
|
| (b) | interest on a theatre tax credit under section 826 of ICTA, |
|
| | may be applied in discharging any liability of the company to |
|
| |
| | To the extent that it is so applied the Commissioners’ liability |
|
| under subsection (1) is discharged. |
|
| (3) | If the company’s company tax return for the accounting period is |
|
| enquired into by the Commissioners, no payment in respect of a |
|
| theatre tax credit for that period need be made before the |
|
| Commissioners’ enquiries are completed (see paragraph 32 of |
|
| |
| | In those circumstances the Commissioners may make a payment |
|
| on a provisional basis of such amount as they consider |
|
| |
| (4) | No payment need be made in respect of a theatre tax credit for an |
|
| accounting period before the company has paid to the |
|
| Commissioners any amount that it is required to pay for |
|
| payment periods ending in that accounting period— |
|
| (a) | under PAYE regulations, |
|
| (b) | under section 966 of ITA 2007 (visiting performers), or |
|
|
| |
|
|
| |
| | |
|
| (c) | in respect of Class 1 national insurance contributions |
|
| under Part 1 of the Social Security Contributions and |
|
| Benefits Act 1992 or Part 1 of the Social Security |
|
| Contributions and Benefits (Northern Ireland) Act 1992. |
|
| (5) | A payment in respect of a theatre tax credit is not income of the |
|
| company for any tax purpose. |
|
| 1217KC | Limit on State aid |
|
| (1) | The total amount of any theatre tax credits payable under section |
|
| 1217KB in the case of any undertaking is not to exceed 50 million |
|
| |
| (2) | In this section “undertaking” has the same meaning as in the |
|
| General Block Exemption Regulation. |
|
| (3) | In this section “the General Block Exemption Regulation” means |
|
| |
| (a) | is for the time being in force under Article 1 of Council |
|
| Regulation (EC) No 994/98, and |
|
| (b) | makes, in relation to aid in favour of culture and heritage |
|
| conservation, the declaration provided for by that Article. |
|
| |
| 1217LA | Tax avoidance arrangements |
|
| (1) | A company does not qualify for relief in relation to a theatrical |
|
| production if there are any tax avoidance arrangements relating |
|
| |
| (2) | Arrangements are “tax avoidance arrangements” if their main |
|
| purpose, or one of their main purposes, is the obtaining of a tax |
|
| |
| |
| “arrangements” includes any scheme, agreement or |
|
| understanding, whether or not legally enforceable; |
|
| “tax advantage” has the meaning given by section 1139 of |
|
| |
| 1217LB | Transactions not entered into for genuine commercial reasons |
|
| (1) | A transaction is to be ignored for the purpose of determining a |
|
| relief mentioned in subsection (2) so far as the transaction is |
|
| attributable to arrangements (other than tax avoidance |
|
| arrangements) entered into otherwise than for genuine |
|
| |
| (2) | The reliefs mentioned in subsection (1) are— |
|
| (a) | any additional deduction which a company may make |
|
| |
| (b) | any theatre tax credit to be given to a company. |
|
| (3) | In this section “arrangements” and “tax avoidance |
|
| arrangements” have the same meaning as in section 1217LA. |
|
|
| |
|
|
| |
| | |
|
| |
| 1217M | Application of sections 1217MA to 1217MC |
|
| (1) | Sections 1217MA to 1217MC apply to a company that is treated |
|
| under section 1217H(3) as carrying on a separate trade in relation |
|
| to a theatrical production. |
|
| |
| “the completion period” means the accounting period in |
|
| which the company ceases to carry on the separate |
|
| |
| “loss relief” includes any means by which a loss might be |
|
| used to reduce the amount in respect of which a |
|
| company, or any other person, is chargeable to tax. |
|
| 1217MA | Restriction on use of losses before completion period |
|
| (1) | Subsection (2) applies if a loss is made by the company in the |
|
| separate theatrical trade in an accounting period preceding the |
|
| |
| (2) | The loss is not available for loss relief, except to the extent that the |
|
| loss may be carried forward under section 45 of CTA 2010 to be |
|
| set against profits of the separate theatrical trade in a subsequent |
|
| |
| 1217MB | Use of losses in the completion period |
|
| (1) | Subsection (2) applies if a loss made in the separate theatrical |
|
| trade is carried forward under section 45 of CTA 2010 to the |
|
| |
| (2) | So much (if any) of the loss as is not attributable to relief under |
|
| section 1217H (see subsection (4)) may be treated for the |
|
| purposes of loss relief as if it were a loss made in the completion |
|
| |
| (3) | If a loss is made in the separate theatrical trade in the completion |
|
| period, the amount of the loss that may be— |
|
| (a) | deducted from total profits of the same or an earlier |
|
| period under section 37 of CTA 2010, or |
|
| (b) | surrendered as group relief under Part 5 of that Act, |
|
| | is restricted to the amount (if any) that is not attributable to relief |
|
| |
| (4) | The amount of a loss in any period that is attributable to relief |
|
| under section 1217H is found by— |
|
| (a) | calculating what the amount of the loss would have been |
|
| if there had been no additional deduction under that |
|
| section in that or any earlier period, and |
|
| (b) | deducting that amount from the total amount of the loss. |
|
| (5) | This section does not apply to loss surrendered, or treated as |
|
| carried forward, under section 1217MC (terminal losses). |
|
|
| |
|
|
| |
| | |
|
| |
| (1) | This section applies if— |
|
| (a) | the company ceases to carry on the separate theatrical |
|
| |
| (b) | if the company had not ceased to carry on the separate |
|
| theatrical trade, it could have carried forward an amount |
|
| under section 45 of CTA 2010 to be set against profits of |
|
| that trade in a later period (“the terminal loss”). |
|
| | Below in this section the company is referred to as “company A” |
|
| and the separate theatrical trade is referred to as “trade 1”. |
|
| |
| (a) | is treated under section 1217H(3) as carrying on a |
|
| separate theatrical trade in relation to another theatrical |
|
| production (“trade 2”), and |
|
| (b) | is carrying on trade 2 when it ceases to carry on trade 1, |
|
| | company A may (on making a claim) elect to transfer the |
|
| terminal loss (or a part of it) to trade 2. |
|
| (3) | If company A makes an election under subsection (2), the |
|
| terminal loss (or part of the loss) is treated as if it were a loss |
|
| brought forward under section 45 of CTA 2010 to be set against |
|
| the profits of trade 2 of the first accounting period beginning after |
|
| |
| (4) | Subsection (5) applies if— |
|
| (a) | another company (“company B”) is treated under section |
|
| 1217H(3) as carrying on a separate theatrical trade |
|
| (“company B’s trade”) in relation to another theatrical |
|
| |
| (b) | company B is carrying on that trade when company A |
|
| ceases to carry on trade 1, and |
|
| (c) | company B is in the same group as company A for the |
|
| purposes of Part 5 of CTA 2010 (group relief). |
|
| (5) | Company A may surrender the loss (or part of it) to company B. |
|
| (6) | On the making of a claim by company B the amount surrendered |
|
| is treated as if it were a loss brought forward by company B |
|
| under section 45 of CTA 2010 to be set against the profits of |
|
| company B’s trade of the first accounting period beginning after |
|
| |
| (7) | The Treasury may by regulations make administrative provision |
|
| in relation to the surrender of a loss under subsection (5) and the |
|
| resulting claim under subsection (6). |
|
| (8) | “Administrative provision” means provision corresponding, |
|
| subject to such adaptations or other modifications as appear to |
|
| the Treasury to be appropriate, to that made by Part 8 of Schedule |
|
| 18 to FA 1998 (company tax returns: claims for group relief). |
|
|
| |
|
|
| |
| | |
|
| Provisional entitlement to relief |
|
| 1217N | Provisional entitlement to relief |
|
| (1) | In relation to a company that has made a claim under section |
|
| 1217H in relation to a theatrical production, “interim accounting |
|
| period” means any accounting period that— |
|
| (a) | is one in which the company carries on the separate |
|
| |
| (b) | precedes the accounting period in which it ceases to do |
|
| |
| (2) | A company is not entitled to relief under any of the relieving |
|
| provisions for an interim accounting period unless— |
|
| (a) | its company tax return for the period states the amount of |
|
| planned core expenditure on the theatrical production |
|
| that is EEA expenditure, and |
|
| (b) | that amount is such as to indicate that the EEA |
|
| expenditure condition (see section 1217GB) will be met in |
|
| relation to the production. |
|
| | If those requirements are met, the company is provisionally |
|
| treated in relation to that period as if the EEA expenditure |
|
| |
| (3) | In this section “the relieving provisions” means— |
|
| (a) | section 1217H (additional deduction), |
|
| (b) | section 1217K (theatre tax credits), and |
|
| (c) | section 1217MC (terminal losses). |
|
| 1217NA | Clawback of provisional relief |
|
| (1) | If a statement is made under section 1217N(2) but it subsequently |
|
| appears that the EEA expenditure condition will not be met on |
|
| the company’s ceasing to carry on the separate theatrical trade, |
|
| |
| (a) | is not entitled to relief under any of the relieving |
|
| provisions for any period for which its entitlement |
|
| depended on such a statement, and |
|
| (b) | must amend its company tax return for any such period |
|
| |
| (2) | When a company which has made a claim under section 1217H |
|
| ceases to carry on the separate theatrical trade, the company’s |
|
| company tax return for the period in which that cessation occurs |
|
| |
| (a) | state that the company has ceased to carry on the separate |
|
| |
| (b) | be accompanied by a final statement of the amount of the |
|
| core expenditure on the theatrical production that is EEA |
|
| |
| (3) | If that statement shows that the EEA expenditure condition is not |
|
| |
| (a) | the company is not entitled to relief under any of the |
|
| relieving provisions for any period, |
|
|
| |
|