Getting the Show Back on the Road
Tax reliefs available for museums, galleries, theatrical productions and orchestras have never been more generous – but act now before the curtain comes down!
Fewer industries have been hit harder by the pandemic than the arts and entertainment sector, with museums, art galleries, theatrical and musical performances all being effectively shelved for the last two years. Many of the affected organisations are small not-for-profit businesses and charities who are struggling to recover from the inability to put on exhibits, shows and productions since early 2020.
It is perhaps unsurprising, therefore, that the government announced in the autumn statement that the Creative industries tax reliefs (CITR), first introduced over ten years ago to incentivise productions that promoted British culture, have been made more generous as of last autumn in some cases.
Three such reliefs targeting museums and galleries, theatrical productions and orchestral productions have been improved in the following ways:
- Museums and Galleries Exhibition Tax Relief (MGETR) – MGETR will be extended for a further two years until 31 March 2024, continuing the government’s support for charitable companies to put on high-quality museum and gallery exhibitions. The MGETR headline rate is being increased temporarily from 20% (for non-touring productions) and 25% (for touring productions) to 45% and 50%.
- Theatre Tax Relief (TTR) – The government has temporarily increased the headline rates (from 27 October 2021) from 20% (for non-touring productions) and 25% (for touring productions) to 45% and 50% respectively.
- From 1 April 2023, the rates of these two reliefs will be reduced to 30% and 35% and will then return to 20% and 25% on 1 April 2024 for TTR. As things stand, MGETR will cease on 1 April 2024 and no expenditure from this date will be eligible for relief.
- Orchestra Tax Relief (OTR) – The government has temporarily increased the headline rates (from 27 October 2021) from 25% to 50%, reducing to 35% from 1 April 2023 and returning to 25% on 1 April 2024.
- As well as this from 1 April 2022, changes will be made to better target MGETR, TTR and OTR and ensure that they continue to be safeguarded from abuse.
YesTax actively and strongly encourages eligible entities to look at claiming this very generous relief, remembering that it is not only restricted to limited companies subject to corporation tax.
For more information, please get in touch at hello@yes.tax.
YesTax. Positively Better.