OTR20070 | Orchestra Tax Relief: how to make a claim: payment of tax credit

S1217RI Corporation Tax Act 2009

Set off against other liabilities

Where an Orchestral Production Company (OPC) claims an Orchestra Tax Credit (OTC) it is entitled to, it must be paid to it unless:

• the OPC owes Corporation Tax then the credit and any repayment interest due to the company may be used to offset the liability, or

• the OPC has outstanding or purported liabilities for PAYE, deductions under S966 Income Tax Act 2007 (visiting performers) or Class 1 National Insurance contributions for the period for which the credit is owed, in which case the payment may be withheld, or

• the OPC's Corporation Tax Return for the period in question is enquired into by HMRC, in which case the payment may be withheld. A provisional partial payment may be made if appropriate

• the company is in administration or liquidation, in which case the payment may be withheld (applies only to claims made on or after 1 April 2024)

S130 FA 2008 also allows HMRC to set off a credit against any existing debit irrespective of whether or not the payment period falls within the accounting period.

Repayment interest

Payment of OTC will carry interest from the later of:

• the filing date for the OPC's tax return for the period in relation to which the credit is payable, and

• the date on which the tax return (or amended return) in which the claim is included was submitted to HMRC.