Corporation Tax Act 2009 section 1217GA

The commercial purpose condition

Section 1217GA sets out the "commercial purpose condition" that a theatrical production company must satisfy, requiring that its live performances are intended to be for paying public audiences or for educational purposes.

• At the start of the production phase, the company must intend that all or a high proportion of its live performances will be to paying members of the general public or provided for educational purposes.
• Performances count as being to "paying members" only if they are separately ticketed and a significant proportion of earnings is expected to come from ticket sales.
• Performances qualify as "educational" only if their main purpose is to educate the audience, and the production company must not be associated with or connected to the beneficiaries of the performance.
• A production company is treated as associated with a person if that person controls the company, or is a company controlled by the production company or by someone who also controls the production company.