Textual Amendments
F1Pt. 15C inserted (17.7.2014 for specified purposes and with effect in accordance with Sch. 4 para. 16 of the amending Act, 22.8.2014 in so far as not already in force) by Finance Act 2014 (c. 26), Sch. 4 paras. 1, 16; S.I. 2014/2228, art. 2
Modifications etc. (not altering text)
C1Pt. 15C modified (with application in accordance with s. 17(1)(4) of the amending Act) by Finance Act 2022 (c. 3), s. 17(1)(4)
(1)This Part contains provision about tax relief for production companies in respect of their theatrical productions.
(2)Sections 1217FA to 1217FC define “production company” and “theatrical production”.
(3)Section 1217G sets out the conditions a production company must meet to qualify for relief in relation to its theatrical production.
(4)Section 1217H provides for relief by way of additional deductions in respect of certain expenditure (and section 1217J is about the amount of the additional deduction).
(5)This Part also contains provision—
(a)for a company that claims relief to be treated as carrying on a separate trade relating to the theatrical production (see section 1217H(3)), and
(b)about the calculation of the profits and losses of that trade (see sections 1217I to 1217IF).
(6)Sections 1217K to 1217KC—
(a)provide for relief by way of payments (called “theatre tax credits”) to be made on the company's surrender of certain losses of that trade, and
(b)set out an upper limit on relief, in connection with State aid legislation.
(7)Sections 1217LA and 1217LB are about certain cases involving tax avoidance arrangements or arrangements entered into otherwise than for genuine commercial reasons.
(8)Sections 1217M to 1217MC contain provision about the use of losses of the separate trade (including provision about relief for terminal losses).
(9)Sections 1217N and 1217NA are concerned with the provisional nature of relief given for periods preceding the period in which the company ceases to carry on the separate theatrical trade.
(1)In this Part “theatrical production” means a dramatic production or a ballet (and any ballet is therefore a theatrical production, whether or not it is also a dramatic production).
But see section 1217FB.
(2)“Dramatic production” means a production of a play, opera, musical, or [F2relevant] dramatic piece (whether or not involving improvisation) in relation to which the following conditions are met—
(a)the actors, singers, dancers or other performers are to give their performances wholly or mainly through the playing of roles,
(b)each performance in the proposed run of performances is to be live,
[F3(ba)each performance is intended to be given to an audience of not less than five individuals,] and
(c)the presentation of live performances is the main object, or one of the main objects, of the company's activities in relation to the production.
(3)“Dramatic piece” may F4... include, for example, a show that is to be performed by a circus.
[F5(3A)“Relevant dramatic piece” means a dramatic piece (other than a play, opera or musical) that tells a story or a number of related or unrelated stories.]
(4)For the purposes of this section a performance is “live” if it is to an audience before whom the performers are actually present.
Textual Amendments
F2Word in s. 1217FA(2) substituted (1.4.2022 in relation to a theatrical production only where the production phase begins on or after that date) by Finance Act 2022 (c. 3), s. 18(2)(a)(i)(6)
F3S. 1217FA(2)(ba) inserted (1.4.2022 in relation to a theatrical production only where the production phase begins on or after that date) by Finance Act 2022 (c. 3), s. 18(2)(a)(ii)(6)
F4Word in s. 1217FA(3) omitted (1.4.2022 in relation to a theatrical production only where the production phase begins on or after that date) by virtue of Finance Act 2022 (c. 3), s. 18(2)(b)(6)
F5S. 1217FA(3A) inserted (1.4.2022 in relation to a theatrical production only where the production phase begins on or after that date) by Finance Act 2022 (c. 3), s. 18(2)(c)(6)
(1)A dramatic production or ballet is not regarded as a theatrical production if—
[F6(za)it is produced for training purposes,]
(a)the main purpose, or one of the main purposes, for which it is made is to advertise or promote any goods or services,
(b)the performances are to consist of or include a competition or contest,
(c)a wild animal is to be used in any performance,
(d)the production is of a sexual nature (see subsection (3)), or
(e)the making of a relevant recording is the main object, or one of the main objects, of the company's activities in relation to the production.
(2)For the purposes of subsection (1)(c) an animal is used in a performance if the animal performs, or is shown, in the course of the performance.
(3)A production is of a sexual nature for the purposes of subsection (1)(d) if the performances are to include any content the nature of which is such that, ignoring financial gain, it would be reasonable to assume the content to be included solely or principally for the purpose of sexually stimulating any member of the audience (whether by verbal or other means).
(4)“Relevant recording” means a recording of a performance—
(a)as a film (or part of a film) for exhibition to the paying general public at the commercial cinema, or
(b)for broadcast to the general public.
(5)In this section—
“broadcast” means broadcast by any means (including television, radio or the internet);
“film” has the same meaning as in Part 15 (see section 1181);
“wild animal” means an animal of a kind which is not commonly domesticated in the British Islands (and in this definition “animal” has the meaning given by section 1(1) of the Animal Welfare Act 2006).
Textual Amendments
F6S. 1217FB(1)(za) inserted (1.4.2022 in relation to a theatrical production only where the production phase begins on or after that date) by Finance Act 2022 (c. 3), s. 18(3)(6)
(1)A company is the production company in relation to a theatrical production if the company (acting otherwise than in partnership)—
(a)is responsible for producing, running and closing the theatrical production,
(b)is actively engaged in decision-making during the production, running and closing phases,
(c)makes an effective creative, technical and artistic contribution to the production, and
(d)directly negotiates for, contracts for and pays for rights, goods and services in relation to the production.
(2)No more than one company can be the production company in relation to a theatrical production.
(3)If more than one company meets the conditions in subsection (1) in relation to a theatrical production, the company that is most directly engaged in the activities mentioned in subsection (1) is the production company.
(4)If there is no company meeting the conditions in subsection (1), there is no production company in relation to the production.]