Corporation Tax Act 2009 section 1217NA

Clawback of provisional relief

Section 1217NA provides for the clawback of provisional theatrical production tax relief where the UK expenditure condition is ultimately not met, and sets out the steps a company must take to correct its tax returns.

• If it becomes apparent that the UK expenditure condition will not be satisfied when the separate theatrical trade ceases, any provisional relief previously claimed must be repaid by amending the relevant tax returns.
• When a company ceases its separate theatrical trade, the tax return for that final period must confirm the cessation and include a final statement showing how much of the core expenditure on the production was UK expenditure.
• If the final statement confirms the UK expenditure condition is not met, the company loses all relief, the production is no longer treated as a separate trade for corporation tax purposes, and the special loss provisions cease to apply.
• Any amendments or assessments needed to give effect to the clawback may be made even if normal time limits for amending returns have expired.