Corporation Tax Act 2009 section 1217TA

Clawback of provisional relief

Section 1217TA deals with the clawback of orchestra tax relief that was claimed on a provisional basis, where it turns out that the UK expenditure condition is not ultimately met.

• If a company claimed orchestra tax relief provisionally but it later becomes clear the UK expenditure condition will not be satisfied when the orchestral trade ceases, the relief must be repaid by amending the relevant tax returns
• When a company ceases its separate orchestral trade, its tax return for the final period must confirm the cessation and include a final statement of how much core expenditure qualifies as UK expenditure
• If the final statement shows the UK expenditure condition is not met, the company loses entitlement to orchestra tax relief and terminal loss relief for all periods, and must amend its returns accordingly
• Any amendments or assessments needed to recover the relief can be made even if the normal time limits for amending returns have expired