Corporation Tax Act 2009 section 1217GC

Core expenditure

Section 1217GC defines what counts as "core expenditure" for a theatrical production, distinguishing direct production costs from indirect or routine running costs.

• Core expenditure covers the direct costs of producing and closing a theatrical production, such as costumes and striking the set
• Indirect costs such as financing, marketing, legal fees, accountancy fees, and storage are excluded from core expenditure
• After the first public performance, ongoing running costs only qualify as core expenditure if they relate to a substantial recasting or substantial redesign of the set
• Teaching or training costs incurred by educational bodies are excluded unless the teaching or training forms part of a rehearsal for the production