An interesting article in The Stage by Matthew Hemley , The Royal Court says that the deferred nature(1) of Theatre Tax Relief credits is not helping with the cash flow issues which the Sloane Square theatre is facing.
Unfortunately one can only claim Theatre Tax Relief (TTR) at the same time as Corporation Tax, usually once a year and possibly a long time after your production has closed.
You have that good-looking line on your production budget on the income side saying “TTR: £10,000” but then you have to wait 18 months before you actually get that income on your bank account.
(1) Theatre Tax Relief is claimed after the end of the Tax Year. For example, since The Royal Court’s tax year 2016-2017 ended on 31 March 2017, and accounts were approved by the board on 23 November 2017, Corporation tax was probably filed shortly after that date, roughly 8 months after the end of the tax year. More on this in our FAQ.