A self-employed composer had their newly composed opera staged by a company with whom they have long-standing links. The production made a substantial loss. The composer, who has personal wealth but little income, paid the company a lump sum to cover the loss on the production and expects tax relief through the self-employed accounts.
I am in two minds: if a loss of another business is being covered it is surely not "wholly and exclusively" for the composer's business purposes. On the other hand if the composer's works are never performed they will never make a profit so could it be looked at as a promotional cost? The Business Income Manual BIM37050 onwards seems to maybe allow this but if anyone has any opinion on this I would be interested to know.