Corporation Tax Act 2010 section 357UK

Northern Ireland additional deduction

Section 357UK defines what counts as a "Northern Ireland additional deduction" in the context of orchestra tax relief, and explains how it fits within the calculation of Northern Ireland profits or losses.

• A Northern Ireland additional deduction is the portion of an orchestra tax relief additional deduction that relates to qualifying expenditure classified as Northern Ireland expenditure.
• The additional deduction in question is the one available under the orchestra tax relief rules, where a production company can claim an enhanced deduction for qualifying expenditure.
• Any such Northern Ireland additional deduction is treated as forming part of the Northern Ireland profits or Northern Ireland losses of the company's separate orchestral trade.
• This ensures that the additional tax deduction attributable to Northern Ireland expenditure is correctly allocated when determining the company's Northern Ireland tax position.