Corporation Tax Act 2009 section 1217IC

Costs of the production

Section 1217IC defines what counts as the costs of a theatrical production for the purposes of the theatrical production tax relief, and clarifies how capital expenditure on creating the production is treated.

• Costs of a theatrical production include expenditure on developing, producing, running, closing, and exploiting the production.
• Any restrictions or prohibitions on deductions under the wider Corporation Tax Acts still apply to these costs.
• Expenditure that would normally be treated as capital solely because it creates an asset (the theatrical production itself) is instead treated as revenue expenditure.
• Other capital expenditure remains subject to the usual capital expenditure rules under section 53 and the general Corporation Tax restrictions.