Theatre Tax Relief for Charities is available, provided certain conditions are met. The not-for-profit organisations that can apply for TTR include charitable companies and community interest companies.
The overall conditions that must be satisfied are:
- The company must qualify as a theatre production company
- The production is a theatrical (dramatic) production and is not an excluded category production
- Production is intended for live performances – for paying general public or for educational purposes.
- At least 25% of the core expenditure on the production arises within EEA (European Economic Area)
The Theatre Tax Relief Eligibility tool can help you check if your company and production qualify for TTR.
How is TTR calculated for Charities?
Charities are usually exempt from corporation tax on revenue sources such as: trading profits, rental income, capital gains and interest, provided these are for charitable purposes only. So how can tax relief be claimed if there is no corporation tax to pay?
The answer is simple. The same Theatre Tax Credit calculation applies to a qualifying not-for-profit theatre producing organisation as it will apply to a commercial theatre company. This means that qualifying charities and community interest companies are entitled to claim theatre tax credit on their enhanced qualifying expenditure.
There is one final requirement that must be met which is that, for tax purposes, each individual production must be treated as a separate theatrical trade.
It is recommended that a charity should seek professional advice to see if being recognised as a theatrical production company for the purpose of claiming theatre tax relief may impact its charitable status.
Theatre Tax Relief Calculator
Check our online theatre tax relief calculator to estimate how much your company can claim.