Tom taking in nude show (7)
I believe the answer is:
cabaret
'show' is the definition.
(I've seen this before)
'tom taking in nude' is the wordplay.
'tom' becomes 'cat' (I have seen 'A tom ' mean 'cat' so perhaps 'tom' could also mean 'cat').
'taking in' indicates putting letters inside.
'nude' becomes 'bare' (I've seen this before).
'cat' enclosing 'bare' is 'CABARET'.
(Other definitions for cabaret that I've seen before include "Film set in 1931 Berlin - floor show" , "Floor show for Arab etc" , "Entertainment at night club" , "Stage show" , "Liza Minnelli's entertainment?" .)