Corporation Tax Act 2009 section 1217KB

Payment in respect of theatre tax credit

Section 1217KB sets out how theatre tax credits are paid to qualifying companies, including the rules around offsetting, enquiries, and conditions that must be met before payment is made.

• HMRC must pay the theatre tax credit to a company that is entitled to the credit and makes a claim
• The credit (and any interest on it) can be used to offset the company's corporation tax liability, reducing what HMRC owes accordingly
• HMRC can withhold or make provisional payments where the company's tax return is under enquiry, and no payment need be made until the company has met its PAYE, visiting performer, and Class 1 national insurance obligations
• A theatre tax credit payment is not treated as income of the company for any tax purpose