Autumn Budget 2021: Creative sector tax reliefs – rates of relief

The Chancellor announced in the Autumn Budget 2021 a temporary increase in the rate of certain creative sector tax reliefs.

These increases are for a limited period only and are intended to kick-start activity in these sectors post-Coronavirus.

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 rates are respectively 50%, 35% and then back to 25%.
• The rates of Orchestra Relief will become 50% from today until 31 March 2023, 35% for the following year and then return to 25%.
• The rate of Museum and Galleries Relief will increase in line with Theatre Tax Relief above and the regime will now run until March 2024 instead of ending in 2022.

Some technical changes are to be made to the above reliefs to clarify some of the rules.  Full details have yet to be published.

Moore Kingston Smith comment
The Treasury estimates that these changes will have a positive impact on around 1,200 companies operating in the relevant sectors. This is great news and provides the sector with sorely needed support.  However, it remains to be seen whether those producers who have already taken a risk and opened productions – struggling with the challenges of reduced capacity audiences, Coronavirus enforced show closures and the continuing threat of Plan B – are able to benefit.  Disappointing if those who took the most risk and led the way were to miss out.

If you have any question on the recent announcement, please contact us.

Further information on how we can assist the theatre sector.