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(b)    

the company is treated for corporation tax purposes as if

 

section 1217H(3)(a) (treatment as a separate trade) did

 

not apply in relation to the theatrical production for any

 

period, and

 

(c)    

accordingly, sections 1217MA and 1217MB (provisions

 

about use of losses) do not apply in relation to the

 

theatrical production for any period.

 

(4)    

Where subsection (3) applies, the company must amend its

 

company tax return for any period in which (or in any part of

 

which) it was treated as carrying on a separate trade relating to

 

the theatrical production.

 

(5)    

Any amendment or assessment necessary to give effect to this

 

section may be made despite any limitation on the time within

 

which an amendment or assessment may normally be made.

 

(6)    

In this section “the relieving provisions” has the same meaning as

 

in section 1217N.

 

Interpretation

 

1217O

 Activities involved in developing, producing, running or closing

 

a production

 

    

The Treasury may by regulations amend section 1217GC (core

 

expenditure) or 1217IC (costs of production) for the purpose of

 

providing that activities of a specified description are, or are not,

 

to be regarded as activities involved in developing or (as the case

 

may be) producing, running or closing—

 

(a)    

a theatrical production, or

 

(b)    

a theatrical production of a specified description.

 

1217OA 

 “Company tax return”

 

    

In this Part “company tax return” has the same meaning as in

 

Schedule 18 to FA 1998 (see paragraph 3(1) of that Schedule).

 

1217OB 

 Index

 

    

In this Part—

 

“commercial purpose condition” has the meaning given by

 

section 1217GA;

 

“company tax return” has the meaning given by section

 

1217OA;

 

“core expenditure” has the meaning given by section

 

1217GC;

 

“costs”, in relation to a theatrical production, has the

 

meaning given by section 1217IC;

 

“EEA expenditure” has the meaning given by section

 

1217GB;

 

“EEA expenditure condition” has the meaning given by

 

section 1217GB;

 

references to “income from a theatrical production” are to be

 

read in accordance with section 1217IB;

 
 
 
 

23

 
 

“production company” has the meaning given by section

 

1217FC;

 

“qualifying expenditure” has the meaning given by section

 

1217JA;

 

references to the “separate theatrical trade” are to be read in

 

accordance with section 1217I;

 

“theatrical production” has the meaning given by section

 

1217FA (read with section 1217FB).”

 

Consequential amendments

 

ICTA

 

2    (1)  

Section 826 of ICTA (interest on tax overpaid) is amended as follows.

 

      (2)  

In subsection (1), after paragraph (fb) insert—

 

“(fc)    

a payment of theatre tax credit falls to be made to a

 

company; or”.

 

      (3)  

In subsection (3C), for “or video game tax credit” substitute “, video

 

game tax credit or theatre tax credit”.

 

      (4)  

In subsection (8A)—

 

(a)    

in paragraph (a) for “or (f)” substitute “(f), (fa), (fb) or (fc)”, and

 

(b)    

in paragraph (b)(ii), after “video game tax credit” insert “or

 

theatre tax credit”.

 

      (5)  

In subsection (8BA), after “video game tax credit” (in both places) insert

 

“or theatre tax credit”.

 

FA 1998

 

3          

Schedule 18 to FA 1998 (company tax returns, assessments and related

 

matters) is amended as follows.

 

4          

In paragraph 10 (other claims and elections to be included in return), in

 

sub-paragraph (4)—

 

(a)    

before “claims” insert “certain”;

 

(b)    

for “or 15B” substitute “, 15B or 15C”.

 

5    (1)  

Paragraph 52 (recovery of excessive overpayments etc) is amended as

 

follows.

 

      (2)  

In sub-paragraph (2), after paragraph (bf) insert—

 

“(bg)    

theatre tax credit under Part 15C of that Act,”.

 

      (3)  

In sub-paragraph (5)—

 

(a)    

after paragraph (ah) insert—

 

“(ai)    

an amount of theatre tax credit paid to a

 

company for an accounting period,”;

 

(b)    

in the words after paragraph (b), after “(ah)” insert “, (ai)”.

 

6    (1)  

Part 9D (certain claims for tax relief) is amended as follows.

 
 
 
 

24

 
 

      (2)  

In paragraph 83S (introduction), after paragraph (c) insert—

 

“(d)    

an additional deduction under Part 15C of CTA 2009,

 

(e)    

a theatre tax credit under that Part of that Act.”

 

      (3)  

The heading of that Part becomes “Claims for tax relief under Part

 

15, 15A, 15B or 15C of the Corporation Tax Act 2009”.

 

CAA 2001

 

7          

In Schedule A1 to CAA 2001 (first-year tax credits), in paragraph 11(4),

 

omit the “and” at the end of paragraph (d) and after paragraph (e) insert

 

“, and

 

(f)    

section 1217K of that Act (theatre tax credits).”

 

FA 2007

 

8          

In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa)

 

(meaning of “corporation tax credit”), omit the “or” at the end of sub-

 

paragraph (ivb) and after that sub-paragraph insert—

 

“(ivc)    

a theatre tax credit under section 1217K of that

 

Act, or”.

 

CTA 2009

 

9          

In section 104BA of CTA 2009 (R&D expenditure credits: restrictions on

 

claiming other tax reliefs), after subsection (3) insert—

 

“(4)    

For provision prohibiting an R&D expenditure credit being given

 

under this Chapter and relief being given under section 1217H or

 

1217K (theatrical productions: additional deduction or theatre

 

tax credit), see section 1217JA(2).”

 

10         

In Part 8 of CTA 2009 (intangible fixed assets), in Chapter 10 (excluded

 

assets), before section 809 insert—

 

“808C

Assets representing expenditure incurred in course of separate

 

theatrical trade

 

(1)    

This Part does not apply to an intangible fixed asset held by a

 

theatrical production company so far as the asset represents

 

expenditure on a theatrical production that is treated under Part

 

15C as expenditure of a separate trade (see particularly sections

 

1217H and 1217IE).

 

(2)    

In this section—

 

“theatrical production” has the same meaning as in Part 15C

 

(see section 1217FA);

 

“theatrical production company” means a company which,

 

for the purposes of that Part, is the production company

 

in relation to a theatrical production (see section

 

1217FC).”

 

11         

In section 1040ZA of CTA 2009 (additional relief for expenditure on

 

research and development), after subsection (3) insert—

 
 
 
 

25

 
 

“(4)    

For provision prohibiting relief being given under this Part and

 

under section 1217H or 1217K (theatrical productions: additional

 

deduction or theatre tax credit), see section 1217JA(2).”

 

12         

In section 1310 of CTA 2009 (orders and regulations), in subsection (4),

 

after paragraph (ej) insert—

 

“(ek)    

section 1217GB(4) (EEA expenditure condition),

 

(el)    

section 1217J(4) (amount of additional deduction),

 

(em)    

section 1217O (activities involved in developing,

 

producing, running or closing a production),”.

 

13         

In Schedule 4 to CTA 2009 (index of defined expressions) at the

 

appropriate place insert—

 

“commercial purpose

section 1217OB”;

 
 

condition (in Part 15C)

  
 

“company tax return (in

section 1217OA”;

 
 

Part 15C)

  
 

“core expenditure (in

section 1217GC”;

 
 

Part 15C)

  
 

“costs of a theatrical

section 1217IC”;

 
 

production (in Part 15C)

  
 

“EEA expenditure (in

section 1217GB”;

 
 

Part 15C)

  
 

“EEA expenditure

section 1217OB”;

 
 

condition (in Part 15C)

  
 

“income from a theatrical

section 1217IC”;

 
 

production (in Part 15C)

  
 

“production company (in

section 1217FC”;

 
 

Part 15C)

  
 

“qualifying expenditure

section 1217JA”;

 
 

(in Part 15C)

  
 

“the separate theatrical

section 1217OB”;

 
 

trade (in Part 15C)

  
 

“theatrical production (in

section 1217FA”.

 
 

Part 15C)

  
 

FA 2009

 

14         

In Schedule 54A to FA 2009 (which is prospectively inserted by F(No.

 

3)A 2010 and contains provision about the recovery of certain amounts

 

of interest paid by HMRC), in paragraph 2—

 

(a)    

in sub-paragraph (2), omit the “or” at the end of paragraph (f)

 

and after paragraph (g) insert “, or

 
 
 
 

26

 
 

(h)    

a payment of theatre tax credit under section

 

1217K of CTA 2009 for an accounting period.”;

 

(b)    

in sub-paragraph (4), for “(e)” substitute “(h)”.

 

CTA 2010

 

15  (1)  

Section 357CG of CTA 2010 (profits arising from the exploitation of

 

patents etc: adjustments in calculating profits of trade) is amended as

 

follows.

 

      (2)  

In subsection (3), omit the “and” at the end of paragraph (c) and after

 

paragraph (d) insert “, and

 

(e)    

the amount of any additional deduction for the

 

accounting period obtained by the company under Part

 

15C of CTA 2009 in respect of qualifying expenditure on

 

a theatrical production.”

 

      (3)  

In subsection (6)—

 

(a)    

in the definition of “qualifying expenditure”, omit the “and” at

 

the end of paragraph (a) and after paragraph (b) insert “, and

 

(c)    

in relation to a company that is the

 

production company (as defined in

 

section 1217FC of that Act) in relation to

 

a theatrical production, has the same

 

meaning as in Part 15C of that Act,”;

 

(b)    

omit the “and” at the end of the definition of “television

 

production company” and after that definition insert—

 

““theatrical production” has the same meaning as in

 

Part 15C of CTA 2009 (see section 1217FA of that

 

Act), and”.

 

Commencement

 

16  (1)  

Any power to make regulations conferred on the Treasury by virtue of

 

this Schedule comes into force on the day on which this Act is passed.

 

      (2)  

So far as not already brought into force by sub-paragraph (1), the

 

amendments made by this Schedule come into force in accordance with

 

provision contained in an order made by the Treasury.

 

      (3)  

An order under sub-paragraph (2) may make different provision for

 

different purposes.

 

17  (1)  

The amendments made by this Schedule have effect in relation to

 

accounting periods beginning on or after 1 September 2014.

 

      (2)  

Sub-paragraph (3) applies where a company has an accounting period

 

beginning before 1 September 2014 and ending on or after that date (“the

 

straddling period”).

 

      (3)  

For the purposes of Part 15C of CTA 2009—

 
 
 
 

27

 
 

(a)    

so much of the straddling period as falls before 1 September 2014,

 

and so much of that period as falls on or after that date, are

 

treated as separate accounting periods, and

 

(b)    

any amounts brought into account for the purposes of calculating

 

for corporation tax purposes the profits of a trade for the

 

straddling period are apportioned to the two separate

 

accounting periods on such basis as is just and reasonable.”

Before Schedule 4

Insert the following new Schedule—

“Pension flexibility: further amendments

Temporary extension of period by which commencement lump sum may precede pension

1          

In Schedule 29 to FA 2004 (authorised lump sums under registered

pension schemes) after paragraph 1 (conditions for a lump sum to be a

pension commencement lump sum) insert—

“1A(1)  

Paragraph 1(1)(c) is to be omitted when deciding whether a

lump sum to which this paragraph applies is a pension

commencement lump sum.

      (2)  

This paragraph applies to a lump sum if—

(a)    

the sum is paid in respect of a money purchase

arrangement,

(b)    

the sum is paid before the member becomes entitled to

the sum,

(c)    

either—

(i)    

the sum is paid on or after 19 September 2013

but before 6 April 2015, or

(ii)    

the sum is paid before 19 September 2013, a

contract for a lifetime annuity is entered into to

provide the pension in connection with which

the sum is paid, and on or after 19 March 2014

the contract is cancelled, and

(d)    

the member becomes entitled to the sum before 6

October 2015.

      (3)  

Where—

(a)    

a lump sum to which this paragraph applies is a

pension commencement lump sum but would not be a

pension commencement lump sum if sub-paragraph

(1) were omitted, and

(b)    

the lump sum is paid to the member in connection with

a pension under the scheme to which it is expected that

the member will become entitled (“the expected

pension”),

            

no lump sum paid to the member out of the expected-pension

fund is a pension commencement lump sum; and here “the

expected-pension fund” means the sums and assets that from

time to time represent the sums and assets that, when the lump

 
 
 

28

 
 

sum mentioned in paragraph (a) was paid, were held for the

 

purpose of providing the expected pension.

 

      (4)  

For the purposes of sub-paragraph (2), if the circumstances are

 

as described in sub-paragraph (2)(c)(ii), the member is treated

 

as not having become entitled to the arranged pension as a

 

result of the cancelled contract having been entered into; and

 

here “the arranged pension” means the pension that would

 

have been provided by that contract had it not been cancelled.”

 

Temporary relaxation to allow transfer of pension rights after lump sum paid

 

2    (1)  

In Schedule 29 to FA 2004 after paragraph 1A insert—

 

“1B(1)  

When deciding whether a lump sum to which this paragraph

 

applies is a pension commencement lump sum—

 

(a)    

paragraph 1(1)(aa) and (c) and (3) are to be omitted,

 

(b)    

paragraph 1(4) is to be treated as referring to the actual

 

pension (see sub-paragraph (2)(h) of this paragraph),

 

and

 

(c)    

paragraph 2(2) is to be treated as referring to the

 

arrangement under which the member was expected to

 

become entitled to the expected pension (see sub-

 

paragraph (2)(b) of this paragraph).

 

      (2)  

This paragraph applies to a lump sum if—

 

(a)    

the sum is paid in respect of a money purchase

 

arrangement,

 

(b)    

the sum is paid to the member in connection with a

 

pension under a registered pension scheme to which it

 

is expected that the member will become entitled (“the

 

expected pension”),

 

(c)    

the expected pension is income withdrawal, a lifetime

 

annuity or a scheme pension,

 

(d)    

the sum is paid before the member becomes entitled to

 

the expected pension,

 

(e)    

either—

 

(i)    

the sum is paid on or after 19 September 2013

 

but before 6 April 2015, or

 

(ii)    

the sum is paid before 19 September 2013, a

 

contract for a lifetime annuity is entered into to

 

provide the expected pension, and on or after

 

19 March 2014 the contract is cancelled,

 

(f)    

the sum is not repaid at any time before 6 October 2015,

 

(g)    

before the member becomes entitled to the expected

 

pension, there is a recognised transfer of the sums and

 

assets that immediately before the transfer represent

 

the sums and assets that when the sum was paid were

 

held for the purpose of providing the expected

 

pension,

 

(h)    

the member becomes entitled before 6 October 2015 to

 

a pension under the scheme to which the recognised

 

transfer is made (“the actual pension”),

 
 

 
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Revised 4 July 2014