Corporation Tax Act 2009 section 1217RB

The UK expenditure condition

Section 1217RB sets out the minimum level of UK expenditure that a company producing orchestral concerts must incur in order to qualify for orchestra tax relief.

• At least 10% of the core expenditure on producing a concert or concert series must be UK expenditure — meaning spent on goods or services used or consumed in the United Kingdom.
• Where expenditure needs to be split between UK and non-UK amounts, the apportionment must be made on a just and reasonable basis.
• The Treasury has the power to change the 10% threshold and the definition of UK expenditure by regulations.
• Relief may be given provisionally on the assumption that the UK expenditure condition will be met, but this can be clawed back if the condition is ultimately not satisfied.