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Musicians’ relief to be modelled on theatre deduction
A new tax relief to support the UK’s orchestras is set to come into force in April 2016.
The measure is modelled on the existing theatre tax relief, to provide a corporation tax deduction or a payable tax credit on expenditure including players’ fees, rehearsal costs and venue hire, with a higher rate for touring productions.
The Treasury has published a consultation that sets out the details of the proposed relief and is seeking views on its design. Key features include: www.lexisurl.com/orchestra
- business must be incorporated and engaged in the production of live orchestral performances;
- form of an additional deduction for corporation tax purposes which can be surrendered for a payable tax credit;
- available for the creative and production costs of live orchestral performances but not for day-to-day running costs;
- higher rate of credit for performances that are part of a tour to encourage orchestras to play for a wide range of audiences; and
- it will be possible to group together multiple qualifying performances in one claim
Comments should be emailed no later than 5 March.
