Corporation Tax Act 2009 section 1217J

Amount of additional deduction

Section 1217J sets out how to calculate the amount of the additional deduction a company may claim in respect of its qualifying expenditure on a theatrical production.

• The additional deduction is the lower of the UK qualifying expenditure or 80% of total qualifying expenditure incurred to date
• In the first period of account, the full calculated amount is available as the additional deduction
• In subsequent periods, any additional deductions already given for previous periods are subtracted from the calculated amount
• The Treasury has the power to amend the 80% cap by regulations