Corporation Tax Act 2009 section 1217GB

The UK expenditure condition

Section 1217GB sets out the minimum level of UK expenditure that a theatrical production company must incur in order to qualify for theatre tax relief.

• At least 10% of the core expenditure on the theatrical production must be UK expenditure
• UK expenditure means spending on goods or services that are used or consumed in the United Kingdom
• Any split between UK and non-UK expenditure must be made on a just and reasonable basis
• The Treasury has the power to change both the 10% threshold and the definition of UK expenditure by regulations