Corporation Tax Act 2009 section 1217I

Introduction to sections 1217IA and 1217IF

Section 1217I introduces the rules for calculating profits or losses of a separate theatrical trade for corporation tax purposes.

• Where a company claims the theatrical productions tax relief, it may be treated as carrying on a separate theatrical trade.
• The separate theatrical trade is deemed to exist under section 1217H(3)(a), which separates the theatrical production activities from the company's other activities.
• The profits or losses of this separate theatrical trade must be calculated using the specific rules set out in sections 1217IA to 1217IF.
• These calculation rules override the normal corporation tax rules for computing trading profits and losses, ensuring the theatrical trade is dealt with under its own dedicated framework.