Corporation Tax Act 2009 section 1217RH

Amount of surrenderable loss

Section 1217RH defines the surrenderable loss that an orchestral concert production company can use to claim orchestra tax credit, and explains how the available loss and available qualifying expenditure are calculated.

• The surrenderable loss is the lower of the company's available loss in its separate orchestral trade and its 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 or set against profits
• Available qualifying expenditure for the first period equals the core expenditure to date; for later periods it is the cumulative core expenditure to date minus any amounts previously surrendered for orchestra tax credit
• Where the separate orchestral trade's period of account does not align with the company's accounting period, figures are apportioned on a time basis using the number of days in each period