SolvedAPC50050 | Eligible expenditure: UK expenditure
From HM Revenue & Customs · Animation Production Company Manual
S1216AH, S1216CG Corporation Tax Act 2009
The amount of Television Tax Relief (TTR) to which a Television Production Company (TPC) is entitled in respect of an animation is determined by the amount of core expenditure (see APC50010) which is used or consumed in the UK.
UK expenditure is defined as:
‘…expenditure on goods or services that are used or consumed in the United Kingdom.’
The key test here is the location where goods or services are used or consumed. The nationality of the provider of the goods or services is irrelevant, as is their location.
In order to determine whether expenditure is UK expenditure, it is necessary to establish:
the nature of the specific goods or services in question, and
the place where the recipient uses or consumes those goods and services.
These issues are explored further at: