C1F2PART 15DOrchestra tax relief
Pt. 15D modified (with application in accordance with s. 19(1)(4) of the amending Act) by Finance Act 2022 (c. 3), s. 19(1)(4)
C1CHAPTER 3Orchestra tax relief
Orchestra tax credits
1217RGC1Orchestra tax credit claimable if company has surrenderable loss
1
A company which qualifies for orchestra tax relief in relation to the production of a concert or concert series may claim an orchestra tax credit in relation to the production for an accounting period in which the company has a surrenderable loss.
2
Section 1217RH 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.
C24
The amount of the orchestra tax credit to which a company making a claim is entitled for the accounting period is 25% of the amount of the loss surrendered.
5
The company's available loss for the accounting period (see section 1217RH(2)) is reduced by the amount surrendered.
1217RHC1Amount of surrenderable loss
1
The company's surrenderable loss in the accounting period is—
a
the company's available loss for the period in the separate orchestral trade (see subsections (2) and (3)), or
b
if less, the available qualifying expenditure for the period (see subsections (4) and (5)).
2
The company's available loss for an accounting period is—
where—
L is the amount of the company's loss for the period in the separate orchestral trade, and
RUL is the amount of any relevant unused loss of the company (see subsection (3)).
3
The “relevant unused loss” of a company is so much of any available loss of the company for the previous accounting period as has not been—
a
surrendered under section 1217RG, or
b
carried forward under section 45 F3or 45B of CTA 2010 and set against profits of the separate orchestral trade.
4
For the first period of account during which the separate orchestral trade is carried on, the available qualifying expenditure is the amount that is E for that period for the purposes of section 1217RE(2).
5
For any period of account after the first, the available qualifying expenditure is—
where—
E is the amount that is E for that period for the purposes of section 1217RE(3), and
S is the total amount previously surrendered under section 1217RG.
6
If a period of account of the separate orchestral trade does not coincide with an accounting period, any necessary apportionments are to be made by reference to the number of days in the periods concerned.
1217RIC1Payment in respect of orchestra tax credit
1
If a company—
a
is entitled to an orchestra tax credit for an accounting period, and
b
makes a claim,
the Commissioners for Her Majesty's Revenue and Customs (“the Commissioners”) must pay the amount of the credit to the company.
2
An amount payable in respect of—
a
an orchestra tax credit, or
b
interest on an orchestra tax credit under section 826 of ICTA,
may be applied in discharging any liability of the company to pay corporation tax.
To the extent that it is so applied the Commissioners' liability under subsection (1) is discharged.
3
If the company's company tax return for the accounting period is enquired into by the Commissioners, no payment in respect of an orchestra tax credit for that period need be made before the Commissioners' enquiries are completed (see paragraph 32 of Schedule 18 to FA 1998).
In those circumstances the Commissioners may make a payment on a provisional basis of such amount as they consider appropriate.
4
No payment need be made in respect of an orchestra tax credit for an accounting period before the company has paid to the Commissioners any amount that it is required to pay for payment periods ending in that accounting period—
a
under PAYE regulations,
b
under section 966 of ITA 2007 (visiting performers), or
c
in respect of Class 1 national insurance contributions under Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
F44A
For the purposes of subsection (4), a “payment period” is—
a
in relation to PAYE regulations or Class 1 national insurance contributions, a period—
i
which ends on the fifth day of a month, and
ii
for which the company is liable to account for income tax and national insurance contributions to an officer of Revenue and Customs;
b
in relation to section 966 of ITA 2007, a period for which the company is required to make a return as described in section 969(1)(b) of that Act.
5
A payment in respect of an orchestra tax credit is not income of the company for any tax purpose.
1217RJC1Limit on State aid
In accordance with Commission Regulation (EU) No. 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market F1(as that Regulation had effect immediately before IP completion day), the total amount of orchestra tax credits payable under section 1217RI in the case of any undertaking is not to exceed 50 million euros per year.
1217RKC1No account to be taken of amount if unpaid
1
In determining for the purposes of this Chapter the amount of costs incurred on a production of a concert or concert series at the end of a period of account, ignore any amount that has not been paid 4 months after the end of that period.
2
This is without prejudice to the operation of section 1217QE (when costs are taken to be incurred).
Pt. 15D inserted (with effect in accordance with Sch. 8 para. 17(1)(a) of the amending Act) by Finance Act 2016 (c. 24), Sch. 8 para. 1