Corporation Tax Act 2009 section 1217H

Claim for additional deduction

Section 1217H sets out how a qualifying production company may claim an additional tax deduction in respect of a theatrical production, and how that production is treated as a separate trade for corporation tax purposes.

• A company that qualifies for theatre tax relief may claim an additional deduction for a theatrical production, with the claim made for a specific accounting period
• Once a claim is made, the company's activities relating to that production are treated as a separate trade, distinct from all its other activities including any other theatrical productions
• The separate trade is treated as beginning either when the production phase starts or when the company first receives income from the production, whichever is earlier
• If the company ceases to meet the conditions for being a production company in relation to the production, it is treated as ceasing to carry on the separate trade at that point