Theatre Tax Relief

To qualify as a touring production, at least one of the following must apply:

• At the start of production, you must intend to have performances at six or more separate premises.
• There will be at least 14 performances, and these will be on at least two separate premises.

Non-core expenditure typically relates to the running and promotional costs for the show. This includes:

• Non-producing activities include financing, legal services, and storage.
• Ordinary running activities (e.g., staff costs during the course of the show).
• Marketing and exploiting the production.

Non-core expenditure relates to initial design stage activities or commercial exploitation of the production.

For example, initial concept artwork used as part of the process of establishing commercial viability is not a core expenditure and is not eligible for TTR. Marketing a production isn’t classed as a development expenditure and, therefore, is not a core expenditure.

Ineligible expenditures include entertaining, publicity, promotion, audit fees, interest, completion bonds and other forms of insurance.

There is no cap on the amount of relief available via Theatre Tax Relief. 

To qualify for Theatre Tax Relief, the theatrical production must be considered a dramatic production, i.e., a play, an opera, musical or other dramatic piece where:

• Actors, singers, dancers or other performers wholly or mainly give their performance by playing a role.
• Performances are live.
• Presentation of the live performances is one of the company’s main objectives in relation to the performance.

The production will not be considered a theatrical performance if:

• One of its primary purposes is to advertise or promote any goods or services.
• The performances are to consist of or include a competition or contest.
• A wild animal is to be used in any performance.
• The production is of a sexual nature.
• The main goal of the production is to film it.
• The production has been produced for training purposes.

Core expenditure must be apportioned on a “fair and reasonable basis". There are multiple ways you can define this, depending on the cost. You may wish to explain your methodology to HMRC to ensure you meet this criterion.

As with core and non-core expenditure, you will need to apportion UK/EEA and non-UK/EEA expenditure. Workers based in a UK/EEA office or working remotely in the UK/EEA can be included, for example, but workers physically outside of the UK/EEA are ineligible. This applies regardless of where the company is based, the worker’s nationality or whether the company is in a group with the claimant.

For some costs that are partly based in the UK/EEA, you can choose how to apportion the cost. For example, a staff member who works partly in the UK/EEA will only be eligible for the number of days they are working there.

For accounting periods beginning before 1 April 2024, you may make your claim up to one year after the company’s filing date.

For accounting periods beginning on or after 1 April 2024, you may make your claim up to 2 years after the end of the period of account.