HMRC has published the latest statistics on the value of creative tax reliefs. Charities undertaking relevant activities may be able to benefit from the Theatre Tax Relief and Orchestra Tax Relief, although the statistics do not break down the specific value of reliefs to charities.

Theatre Tax Relief

• In 2017-18, £77 million of Theatre Tax Relief was paid out relating to 910 claims. Each claim can be for more than one production, so these claims represent 2,980 productions, of which 1,140 were touring and 1,840 non-touring.
• Since Theatre Tax Relief was introduced in September 2014, £137 million has been paid out relating to 1,670 claims, which represents 4,680 productions.

Orchestra Tax Relief

• Since Orchestra Tax Relief was introduced in April 2016, £6.6 million has been paid out relating to 60 claims, which represent 205 productions. This was the first year that statistics were available.

Charities are reminded that the Museums and Galleries Exhibition Tax Relief is now also operational. More details can be found in this recent commentary by Laetitia Ransley here.

Background

Theatre Tax Relief was announced in the Finance Act of 2014 and was introduced on 1 September 2014. Theatrical productions do not need to pass a Theatrical Cultural Test. Production companies are eligible to claim Theatre Tax Relief if:

• it is a qualifying production company engaged in the making of theatrical
  productions
• its primary focus is to play before a live audience of paying members of the general public or for educational purposes
• it has a minimum 25% EEA expenditure.

It has two rates of payable credit, 25% for touring productions, and 20% for others.

Orchestra Tax Relief was announced at Autumn Statement 2014 and was introduced on 1 April 2016. Orchestral productions do not need to pass an Orchestral Cultural Test.

Where a company is an Orchestral Production Company, each qualifying concert or series of concerts is treated as a separate orchestral trade if OTR is claimed in respect of that concert or series. A concert is qualifying if:

• the concert is an orchestral concert
• the concert is intended to be performed live to paying members of the general
  public or provided for educational purposes
• the instrumentalists number at least 12
• none, or a minority of, the musical instruments is electronically or directly amplified
• at least 25% of the core expenditure on the concert must be European Economic
  Area (EEA) expenditure

There is one rate of payable credit of 25% for both touring and non-touring productions.