Artists' Exemption

Advance royalties

You may receive advance royalties for a book or other writing not yet published. If so, you must make a claim in the year in which the royalties are paid if they are to be exempt for that year. You must also send confirmation from the publisher that the book will be published.

You may have sent a claim in the year of the advance payment, but not received a determination as the book had not yet been published. In these circumstances, the advances are subject to Income Tax (IT). If, on receipt of the published book, we subsequently make a determination, we will review the tax you owe and refund you any overpaid tax.

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