TAX CASES - 20.09.2022

HMRC argument was “hyperbole”

Thursford Enterprises Ltd v HMRC. Thursford Enterprises Ltd (T) holds an annual Christmas show in Norfolk. It claimed theatre tax relief on the basis that the production qualified as “dramatic”. HMRC argued that there needed to be a clear storyline in place to qualify, otherwise things like karaoke could qualify.

Law. To qualify, a production must consist of a play, opera, musical or other dramatic piece that tells a story, where the performances are live and the performers give their performances wholly or mainly through the playing of roles.

Decision. The Tribunal found that the performance was mainly achieved through the playing of roles. HMRC’s arguments were hyperbole, and the appeal was allowed.