Section 1217GA — Corporation Tax Act 2009: The commercial purpose condition

The commercial purpose condition 1217GA 1 The “commercial purpose condition” is that at the beginning of the production phase the company intends that all, or a high proportion of, the live performances that it proposes to run will be—

a to paying members of the general public, or b provided for educational purposes.

2 The reference in subsection (1) to “ live performances ” is to be read in accordance with section 1217FA(4). 2A A performance to members of the general public is not regarded as being to paying members unless—

a it is separately ticketed, and b it is intended that a significant proportion of the earnings from the performance should be obtained by such ticketing. 2B For the purposes of subsection (2A), the fact that a ticket covers things reasonably incidental to the performance (such as, for example, a programme or food to be consumed during the course of the performance) does not prevent the performance from being separately ticketed, provided that the price paid can reasonably be apportioned between the performance and those other things. 2C A performance is only regarded as provided for educational purposes if it is provided mainly for the purpose of educating the audience.

3 A performance is not regarded as provided for educational purposes if the production company is, or is associated with, a person who—

a has responsibility for the beneficiaries, or b is otherwise connected with the beneficiaries (for instance, by being their employer).

4 For the purposes of subsection (3), a production company is associated with a person (“P”) if—

a P controls the production company, or b P is a company which is controlled by the production company or by a person who also controls the production company.

5 In this section— “ the beneficiaries ” means persons for whose benefit the performance will or may be provided; “ control ” has the same meaning as in Part 10 of CTA 2010 (see section 450 of that Act).