In some extremely welcome news for all of Wenn Townsend’s creative industry clients and to the Arts in general, the government has today announced a significant increase to Creative Industry Tax Reliefs. This will help eligible Theatre production companies, Museums and Orchestras to bounce back from the impact of the COVID-19 pandemic. The government intends to double the relief available to three corporation tax reliefs:
Theatre Tax Relief (TTR)
TTR was first introduced in Finance Act 2014, and effective from 1st September 2014, which currently allows qualifying Theatre companies to claim back 25% of eligible costs, or 20% of eligible costs for non- touring productions. Effective immediately (i.e. from 27th October 2021), the rate of relief will increase to 50% of eligible costs for touring, and 45% for non-touring productions.
Orchestra Tax Relief (OTR)
OTR was first introduced by Finance Act 2016, with an effective date from 1st April 2016, which currently allows qualifying Orchestral production companies to claim back 25% of eligible costs. From 27th October 2021, the rate of relief will increase to 50% of eligible costs.
Museums and Galleries Exhibition Tax Relief (MGETR)
MGETR was first introduced by Finance Act 2017, with an effective date from 1st April 2017, which currently allows qualifying Museums and Galleries production companies to claim back 25% of eligible costs if the productions are classified as touring, and non-touring productions 20% of eligible costs. From 27th October, the rate of relief will increase to 50% of eligible costs for touring, and 45% for non-touring productions.
Please contact our Creative Industry experts Lee Baker, Arun Bahl, and Corporation Tax expert Charles Gurr for further information.