Section 1217K — Corporation Tax Act 2009: Theatre tax credit claimable if company has surrenderable loss

Theatre tax credit claimable if company has surrenderable loss 1217K 1 A company which—

a is treated under section 1217H(3) as carrying on a separate trade during the whole or part of an accounting period, and b has a surrenderable loss in that period, 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.

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

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

a 45% of the amount of the loss surrendered if the theatrical production is a touring production, or b 40% of the amount of the loss surrendered if the theatrical production is not a touring production.

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

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

a that it will present performances of the production in 6 or more separate premises, or 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.

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