Tax relief – Theatre

25 April 2022 / Insight posted in Technical guidance

Some theatre productions are eligible for Theatre Tax Relief. This relief can increase the amount of expenditure that is allowable as a deduction for tax purposes or, if the company makes a loss, can be surrendered for a payable tax credit. This can provide a subsidy towards the costs of producing a Theatrical Production.

At the Autumn Budget 2021, the government announced an increase in the rates of theatre tax credit with effect from 27 October 2021 (Budget day). From that day, the rate applicable to touring productions has increased from 25% to 50% and the rate applicable to non-touring productions has increased from 20% to 45%. Those rates are set to decrease to 35% and 30% respectively from 1 April 2023 and back to 25%/20% from 1 April 2024 onwards. At the same time, some changes were announced to clarify or amend some of the conditions for relief to ensure that it continues to meet the policy objectives. Those changes have effect for productions where the production phase starts on or after 1 April 2022.

Please download our flyer for detailed information on the relief.