TTR50010 | Eligible expenditure: core expenditure

S1217GC Corporation Tax Act 2009

Expenditure of a separate theatrical trade is that incurred by the Theatrical Production Company (TPC) on developing, producing, running and closing the production (including any pre-trading expenditure on these activities) and on exploiting the production.

Theatre Tax Relief (TTR) is only available on core expenditure that is European expenditure or UK expenditure. Please see TTR50090 for details on which type of expenditure applies.

Core expenditure is expenditure that is incurred on:

• producing the production

• exceptional running costs, and

• closing the production.

Exceptional running costs may include expenditure incurred by the TPC on or after the date of the first live performance of the production to the paying general public or provided for educational purposes in connection with, for instance, a substantial recasting or a substantial redesign of the set.

Core expenditure does not include costs relating to:

• developing the production

• non-producing activities

• ordinary running activities, and

• exploiting the production.

Non-producing activities include, for instance, financing, marketing, legal services and storage.

Expenditure incurred by an educational body on teaching or training participants is non-core except to the extent that the teaching takes place as part of a rehearsal for a production.

See TTR50050+ for information about what expenditure constitutes European expenditure. See TTR50080 for what expenditure constitutes UK expenditure.