Theatre Tax Relief Cash Flow Loans

£100,000 - £500,000

A £2million allocation from the Arts & Culture Impact Fund for UK not-for-profit theatre organisations to cash flow Theatre Tax Relief (TTR) claims. The loans are intended to contribute to the financial resilience of the subsidised theatre sector, enabling borrowers to focus on delivering their strategic objectives rather than short term cash management. Currently accepting applications.

New

Active

Repayable finance

Currently accepting applications. Apply here.

Funding Available
£100,000 – £500,000

Up to 90% of the TTR claim value

Loan Type
Unsecured

Repayment Period
3 months up to an estimated 18 months

Interest Rates
5% pro rata per annum, to be paid from claim proceeds

Fees
2%, payable prior to drawdown
External accountant verification fee: c.£1,200 (inc VAT) subject to claim complexity and scale

Geographic Area Covered
United Kingdom (UK)

Find out more about Theatre Tax Relief Cash Flow Loans below. If you are interested in applying for funding, please complete our investment enquiry form.

Background and History

The Arts & Culture Impact Fund (ACIF) is now providing loans to not-for-profit theatre organisations to cash flow Theatre Tax Relief (TTR) claims.

Figurative has ringfenced the funding to support not-for-profit theatre companies that demonstrate clear social impact. It aims to help organisations manage TTR claims – a creative industry tax relief funded by the UK government.

Introduced by the government in 2014, TTR supports companies, including charities, that produce theatrical productions. However, organisations can often face cash flow challenges while waiting for funds to arrive from HMRC.

The loans are intended to contribute to the financial resilience of the subsidised theatre sector, enabling leaders to focus on strategic objectives, artistic excellence and social impact, rather than short-term cash management.

Previous Investees include Rambert, Young Vic and Little Angel Theatre.

You can find out more information about the government’s TTR scheme here.

Funding

The Theatre Tax Relief Cash Flow Loans offer unsecured finance between £100,000 and £500,000 with an interest rate of 5%. Loans are available for up to 90% of the TTR claim value.

Enquires

If you have any questions regarding the application process, please contact james.cross@figurative.org.uk

Eligibility Criteria

Financial & Governance
Loans available to not-for-profit theatrical production companies or their wholly owned subsidiaries, with appropriate borrowing powers in their articles of association.

Loans can be made for TTR claims:
- After the production phase (as defined by HMRC)
- In the post year-end phase (i.e. once accounts are finalised)
Applicants must demonstrate:
- Appropriate solvency and financial health for the claim period
- A robust production accounting process
- Experience of at least one previously successful TTR claim, with a demonstrably good track record with HMRC
- No outstanding PAYE or VAT debt
TTR Claim
All of HMRC’s eligibility criteria for TTR must be satisfied. A non-exhaustive list of criteria includes:
- The claim is for a qualifying theatrical production and not subject to any exclusions
- The claim is being submitted by a qualifying theatrical production company, which is the sole company making a claim
- The claim includes qualifying expenditure, and has been calculated correctly within a qualifying accounting period
- Satisfaction with confirmed production budget and TTR calculations in a format approved by ACIF
Applicants must be prepared to pay for an independent verification of the TTR claim estimate from an ACIF approved external accountant (c.£1,200 cost subject to claim complexity and scale), and for the TTR claim to be submitted by an ACIF approved external accountant.
Social Impact
Applicants must:
- Demonstrate that they are delivering an activity or programme of work which will contribute positive social impact during the loan period (not necessarily directly associated with the production).
- Outline the intended social impact of this activity or programme of work by detailing the aims, outcomes and deliverables when applying.
- Demonstrate experience of previously delivering work that contributes positive social impact.
- Supply a brief report at the end of the loan period.