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The production activities of a theatrical production company are treated as a separate trade of that company. The activities are separate from any other activities of the company, including any activities relating to another theatrical production¹. Profits and losses are therefore calculated separately for each theatrical production that the company produces.

The trade begins on the earlier of²:

1. Ìý

   •ÌýÌýÌýÌý the beginning of the production phase of the theatrical production and

2. Ìý

   •ÌýÌýÌýÌý the first receipt by the company of any income from the theatrical production

Income is defined as all income from the production, including receipts from the sale of tickets or of rights in the theatrical production, royalties or other payments for use of other aspects of the production such as characters or music, rights for merchandise and receipts by the company by way of any profit share agreements³.

Expenditure is defined as all costs of production incurred by the company developing, producing, running and closing the production or activities with