Corporation Tax Act 2009 section 1217QE

When costs are taken to be incurred

Section 1217QE establishes the rules for determining when costs are treated as having been incurred for the purposes of orchestral concert tax relief.

• Costs of producing a concert or concert series only count as incurred if they have actually been paid, unless there is an unconditional obligation to pay
• An unpaid amount backed by a firm, unconditional commitment to pay is treated as a cost incurred
• Where a payment obligation is linked to income being earned from the concert or concert series, it is not treated as unconditional until an appropriate amount of that income has been recognised in the accounts
• These rules prevent costs from being recognised prematurely for relief purposes, ensuring that only genuine and committed expenditure qualifies