The Chancellor announced in the Autumn Budget 2021 a temporary increase in the rate of a number of creative sector tax reliefs.
The changes are:
- The rate of Theatre Tax Relief for non-touring productions is to be increased to 45% until 31 March 2023, then to 30% for the following year, before returning to 20% from 1 April 2024. For touring productions the corresponding rates will be 50% and 35%, before returning to 25% from 1 April 2024.
- The rate of Orchestra Relief will become 50% from 27 October 2021 until 31 March 2023, 35% for the following year and then return to 25% from 1 April 2024.
- The rate of Museum and Galleries Relief will increase in line with that for Theatre Tax Relief above and the regime will now run until March 2024 instead of ending in 2022 as previously planned.
Some technical changes are to be made to the above reliefs to clarify some of the rules. Full details will be published shortly.
Stephen Bristow, a partner in Saffery Champness’ Film & TV Team, comments:
“The UK’s cultural sector is driven by creativity and enterprise and the changes to the Theatre, Orchestra and Museum and Galleries Relief are a fantastic boost to cultural venues across the country that have had a hard time over the last 18 months. This extra support will create jobs and ensure that more people will have access to great culture.”