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Theatre backers - Angels

Payments made to non-resident theatre backers of plays and musicals (also known as “angels�) are in return for money put up by them in the finance of a production. If the show is successful their investment is first repaid and then they receive a share in any profit.

These payments are “annual payments� under Case III of Schedule D with tax deductible under ICTA88/S349. Relief from UK tax is available under the “Other Income� article (if there is one) and not the royalties article. In cases of doubt you should consider asking the claimant the question “Are you a theatrical angel who has provided financial backing for a theatrical production and is then entitled to a share of the profits?�

See BIM66601.