188ÌåÓý

Sections 4-6 will unlock depending on which reliefs or credits were chosen in section 3.Ìý

SectionÌý6ÌýisÌýrequiredÌýfor claims to theÌýcultural reliefs â€� theatre,ÌýorchestraÌýand museums & galleries exhibition tax relief. If the company is making a claim for any of the audio-visual tax reliefs, orÌýthe expenditure credits, then they will also need to complete section 4 and/orÌýsection 5.

Cultural relief projectsÌýâ€� information about specific productionsÌý

For each individual production being claimed, the following information must be provided. Once these details and the expenditure totals have been provided for one production, the form gives users the opportunity to add details of further productions.

• Production nameÌýÌý

This should be the current name of theÌýproduction.Ìý
Ìý

• Start date ofÌýthe production phaseÌý

This is the date on which theÌýtheatrical production, orchestral concert or exhibition enters production.ÌýThis should be the date at which point the production has been given the green light to go ahead. It does not include anyÌýearly periodÌýwhere speculative work is being undertaken and a decision is still to be made as toÌýwhether or notÌýthe production will go ahead.ÌýPlease see MGETR60020Ìýfor more information about the phases of production.Ìý
Ìý

• Production statusÌý

This is the status of the production at the end date of the accounting period covered by theÌýform. It should not reference any progress made after this date. There are three options:Ìý

- ongoing (where the production is still in development but is not yet complete)Ìý
- completeÌýÌý
-ÌýabandonedÌý

If the production has been abandoned, theÌýform will ask for theÌýdate of abandonment.ÌýHMRC considers a theatrical production, orchestralÌýconcertÌýor exhibition to be complete once the work to produce it has ended and it has entered the running phase. The production does not need to have closed down/ended its run to be complete.Ìý
Ìý

• Date of opening day
  
  
  
• Whether the claimant is the primary production company or a secondary production company (MGETR10030)
  
  
  
• Touring scheduleÌýdetails, ifÌýyou intend to claim the touring rate for a productionÌý

These must be uploaded as a separate document and include the number of venues, and the date and location of each venue.

• Details of connected party transactionsÌýÌý

Expenditure incurred on connected party transactions will only qualify forÌýreliefÌýif the transactions areÌýdisclosedÌýto HMRC. The only way toÌýdiscloseÌýsuch transactions is by completing this step of theÌýadditionalÌýinformation form, for the accounting period in which that expenditure has been brought into account.Ìý

The applicant must set out the number of different connected persons with whom the company has made transactions during the period, and the total value of all the connected party transactions in the period. They must then attach a document that lists out the following information for each transaction:Ìý

• Name of connected party
• Date of transaction
• Amount of expenditure
• Description of goods/servicesÌýprovidedÌý

In some cases, it will be acceptable to bundle multiple transactions of the same type, such as secondment of multiple employees paid at the same rate. A company should only bundle transactions together if it is reasonable to do so. HMRC may ask for a more detailed breakdown of transactions if needed, so companies should still make sure to keep a good record of all transactions with connected parties.Ìý

Payments to connected parties must be madeÌýin accordance withÌýthe arm’s length principle. Please read our guidance on the connected party transaction rules (MGETR70015) for more information.Ìý

Ìý

Expenditure totalsÌý

Once the basic production details for a production have been provided, the user must provide some expenditure figures for the production. The form asks for the following, for each production:

• Calculations uploadÌý

This is an opportunity for companies to upload the remaining mandatory supporting evidence:Ìý

• a computation showing how the amount ofÌýadditionalÌýdeduction and taxÌýcredit has been calculated for eachÌýproductionÌý
• a breakdown of production expenditure for each production, showing the distinction betweenÌýcore/non-coreÌýexpenditure, UK/non-UK expenditure, and any excluded expenditure.Ìý

For the expenditure breakdown, the level ofÌýappropriate detailÌýwill depend on the size of the budget.ÌýÌýGenerally, theÌýheadings adopted by the production accountant are adequate.ÌýÌýThe Creative Industries Unit canÌýprovideÌýfurther advice if needed.Ìý

HMRC has produced templates which companies can complete andÌýsubmitÌýto help them with this requirement. These templates can be downloaded through the formÌýitself, orÌýobtainedÌýbyÌýemailingÌý[email protected]Ìýor the BFI.Ìý

Some productions will useÌýEuropeanÌýexpenditure in place of UK expenditure. Please see MGETR60070Ìýto see if this applies.Ìý
Ìý

• Core expenditure for the periodÌý

This should be the amount of core expenditure brought into account for the period. It includes both UKÌýand non-UK expenditureÌý(orÌýEuropeanÌýand non-European, asÌýappropriate). Core expenditure isÌýexpenditure onÌýproducing the producing, deinstalling and closing the exhibition, and storage in certain circumstances (MGETR60010).

• Core expenditure to date

This is the amount of core expenditure incurred in all accounting periods up to and including the period the company is currently claiming for. This amount must therefore be equal to or more than the core expenditure for the current claim period. If the user is completing the form for the first accounting period of the separate production trade, this amount should equal core expenditure for the accounting period, which was entered on the previous page.
Ìý

• Total UKÌýcore expenditure to dateÌý

This box requires the amount of core expenditure to date that is also UK expenditure.ÌýUK expenditure is expenditure on goods and services used or consumed in the UK (MGETR60060).Ìý

Some productions will useÌýEuropeanÌýexpenditure up to 1 April 2024 or 1 April 2025, and UK expenditure after that. Please see MGETR60070Ìýto see if this applies.Ìý
Ìý

• Additional deductions for previous periods

The form will ask if the company has made an additional deduction for the same production in a previous accounting period. If the answer is yes, the company must enter the combined value of additional made for all periods up to and including the most recent period in which it made an additional deduction. It should not include the additional deduction for the current claim period � the form calculates that on the following page.

• AdditionalÌýdeduction for the periodÌý

This is the amount ofÌýadditionalÌýdeduction the company is claiming under the relevant cultural relief for the period. TheÌýadditionalÌýdeduction is the lesser of:Ìý

• UK expenditureÌý
• 80% of the total core expenditureÌý

Where the production is taking place over multiple accounting periods, these figures areÌýcumulativeÌýand the figures incurred to date should be compared (MGETR70040).Ìý

Some productions will useÌýEuropeanÌýexpenditure in place of UK expenditure. Please see MGETR60070Ìýto see if this applies.

The form calculates this amount automatically and explains how it has done so. It asks the user to confirm the result.
Ìý

• Amount of loss surrenderedÌýfor the period

This is the amount of loss that the company is surrendering in return forÌýa tax credit for the current claim period. It is the lesser of

• the amount of loss made in the separate production trade after making the additional deduction for the period, and
• the amount of the additional deduction for the period

If the company has still made a profit after making the additional deduction, it should enter a zero.

Because of recent changes to the rates of credit, some companies will have to enter two losses for the period, each at a different rate. The form asks for each loss in turn and explains which part of the accounting period it relates to. See MGETR10090 for more details.

• Amount ofÌýtaxÌýcredit claimedÌý

This is the amount of credit that the company is claiming in exchange for its surrenderable loss. It may not be the amountÌýactually payable,Ìýas this is the amount before set-off against any other liabilities of the company.ÌýThe form calculates this amount automatically and asks the user to confirm the result.

Expenditure totals table

After the user has entered the details for each production the company is claiming for and confirmed their answers, the form will show a table based on the expenditure totals entered or calculated for each production, with the combined totals for all productions in the bottom row. Users should check the figures and calculations carefully and go back and correct their answers if necessary.