½Û×ÓÊÓƵ

D7.1275 Theatrical production tax relief—overview

Theatrical production tax relief takes two forms, an additional allowable deduction and a payable theatre tax credit¹. The additional deduction is the lower of²:

1. Ìý

   •ÌýÌýÌýÌý the expenditure which is qualifying UK expenditure (this was UK or EEA expenditure (referred to as 'European expenditure' in the legislation prior to April 2024 — see below), or

2. Ìý

   •ÌýÌýÌýÌý 80% of the total amount of qualifying expenditure

Transitional provisions are included in FA 2024, Sch 3, Pt 2, para 12 to facilitate the transition to UK expenditure in the above calculation. The changes have effect for accounting periods ending on or after 1 April 2024 but European expenditure incurred before 1 April 2024 can count as UK expenditure for these purposes³. Production companies with productions that enter production before 1 April 2024 may elect for European expenditure to count as UK expenditure for those productions up to 1 April 2025⁴.