Corporation Tax Act 2009 section 1217KA

Amount of surrenderable loss

Section 1217KA defines how to calculate the surrenderable loss that a theatrical production company can use to claim theatre tax credit, being the lower of the available trading loss and the available qualifying expenditure.

• The surrenderable loss is the lower of the company's available loss in the separate theatrical trade and the available qualifying expenditure for the period.
• The available loss is the current period's trading loss plus any relevant unused loss carried forward from the previous period that has not already been surrendered for tax credit or set against trade profits.
• The available qualifying expenditure is the cumulative core expenditure to date for the first period, or that cumulative figure less any amounts previously surrendered for tax credit in subsequent periods.
• Where a period of account does not align with an accounting period, amounts must be apportioned on a time basis using the number of days in each period.