Corporation Tax Act 2009 section 1217IB

Income from the production

Section 1217IB defines what counts as income from a theatrical production for the purposes of calculating the profits or losses of the separate theatrical trade.

• Income means any receipts by the production company connected with the making or exploitation of the theatrical production
• This includes ticket sales, sales of rights in the production, royalties or payments for use of aspects such as characters or music, and payments for merchandise rights
• Receipts under profit share agreements also count as income from the production
• Any receipts that would normally be treated as capital in nature are instead treated as revenue for these purposes