Section 1217K | Theatre tax credit claimable if company has surrenderable loss ^F1

(1)A company which—^F1

(a)is treated under section 1217H(3) as carrying on a separate trade during the whole or part of an accounting period, and^F1

(b)has a surrenderable loss in that period,^F1

may claim a theatre tax credit for that accounting period.

(2)Section 1217KA sets out how to calculate the amount of any surrenderable loss that the company has in the accounting period.^F1

(3)A company making a claim may surrender the whole or part of its surrenderable loss in the accounting period.^F1

(4)The amount of the theatre tax credit to which a company making a claim is entitled for the accounting period is—^F1

(a)45% of the amount of the loss surrendered if the theatrical production is a touring production, or^F1F2

(b)40% of the amount of the loss surrendered if the theatrical production is not a touring production.^F1F3

(5)The company's available loss for the accounting period (see section 1217KA(2)) is reduced by the amount surrendered.^F1

(6)A theatrical production is a “touring production” only if the company intends at the beginning of the production phase—^F1

(a)that it will present performances of the production in 6 or more separate premises, or^F1

(b)that it will present performances of the production in at least two separate premises and that the number of performances will be at least 14.^F1

(7)See Schedule 18 to FA 1998 (in particular, Part 9D) for provision about the procedure for making claims under subsection (1).^F1