Common Company Structuring for Charities and Theatre Production Companies 2019-08-14T17:40:51+01:00

In the theatre production world when charities are involved, it is common occurrence where a charity sets up a separate trading subsidiary which becomes the theatre production company. The subsidiary company is subject to UK corporation tax and the standard TTR requirements for commercial entity then apply. 

This model of using a wholly owned trading subsidiary vehicle is also commonly seen in the other creative industries in UK.

Charity Owns a Theatre Perfoming Company

Care must be taken that the trading subsidiary (i.e. not the charity) actually performs the theatre performing company functions (negotiating contracts, producing, running and closing the production etc.). Merely using a subsidiary company to claim the tax relief, while the charity performs the theatre performing company functions is not allowed. 

Care must be taken that the trading subsidiary (i.e. not the charity) actually performs the theatre performing company functions (negotiating contracts, producing, running and closing the production etc.). Merely using a subsidiary company to claim the tax relief, while the charity performs the theatre performing company functions is not allowed. 

Theatrical Production Activities Subcontracted to Charities

 However, the trading subsidiary which meets the TTR requirements can subcontract some of the theatrical production activities back to a not-for-profit organisation.

A charity should seek professional advice to see if using this operating model will not impact on its charitable status and should also consider the implications on VAT liability.

There are also possible VAT implications for Charities involved in Theatre Productions, depending on the charity and theatre performing company structuring and activities.

Check Theatre Tax Relief Eligibility

Use the TTR eligiblity test tool to quickly assess if your theatre production company and production qualifies.

Average R&D tax claim is £56,000

Ask us to review your R&D tax relief claim on your behalf. With our unique fee strcuture you don't pay us a penny until your R&D claim succeeds and provides a benefit to your business!

Start A Claim With Us

Latest News and Insights

See All News and Events

Become a Partner

Working with R&D Tax Solutions enables your service offering to be extended without jeopardising client service or quality. We are the trusted tax partner for a variety of businesses. Our team enables the partnerships to flourish with clear transparency of services provided and benefits obtained. Whether you are a boutique consultancy with a select few clients, or an accounting practice with a wide variety of clients our team will give you the peace of mind that your clients interests are our priority.

Find Out More

Any questions? Talk to our Tax Specialists

0161 298 1010