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As of Wednesday, 6th of March, Jeremy Hunt announced a permanent rate for Theatre Tax Relief (TTR). The chancellor announced the rate of 45% for touring productions and 40% for non-touring shows. This announcement comes just before the general election, and has been the saving grace for the entire live entertainment industry throughout the United Kingdom.
With the Chancellor’s announcement of a new permanent rate for Theatre Tax Relief of 40% and 45% for touring productions, this is set to replace the planned taper from 1 April 2025 which would have been 35% and 30% for touring productions. This will also hopefully replace the planned return to the pre-pandemic rate of 25%/20% in 2026.
The Theatre Tax Relief can help ensure that the UK stays a cultural leader in the entertainment industry, as well as support hundreds of jobs that were at serious risk after announcements of theatrical budgets being slashed or outright cancelled. Theatres that put on live performances of plays, operas, orchestrations, musicals or other dramatic pieces that tell a story, and ballets qualify for the Theatre Tax Relief.
For a production to be considered ‘touring’ under the Theatre Tax Relief it must either:
At the start of the production phase, intend to have performances at six or more separate premises.
OR
Putting on at least 14 performances in at least two separate premises.
Any theatre or production company must have their performances be for members of the general public who have paid to see the production, or it must be for educational purposes. The theatre or production companies must also negotiate, contract, and pay for rights, goods and services involving the production. The company must be responsible for putting on the production from start to finish including employing or engaging the performers. However, companies will run into issues when trying to claim the Theatre Tax Relief due to the conditions that come attached with it.
Some of the conditions that come with the tax relief are what would be considered obvious, for example using a wild animal is used in any performance, or advertising/promoting goods or services.But there are some that in today’s theatre world, would be difficult working around. A theatre or production company cannot claim the tax relief program if the production is of a sexual nature or the performances include a competition or contest.
Royal Scottish National Orchestra announced with the news of the new relief, that they are able to retain ambitions in the face of significant challenges and will stay committed to serving Scotland’s communities, concert halls, and schools.
The Ambassador Theatre Group made a public statement saying they were thrilled the UK government confirmed the budget ‘as it will be a catalyst for innovation, creativity, and the continued growth of the theatre sector’.
More information can be found in the Theatre Tax Relief Manual here.
Janine has always been a part of music and performing. The first show that inspired her to go into theatre was the Velveteen Rabbit which she saw as a child, and Drew works to keep that magic alive in her work. When Drew was accepted into an internship program for audio engineering at a recording studio, she jumped at the opportunity. That was at the start of 2020, and so much has happened since then, both in her career and in the world. Since then, Drew has taken several opportunities to work at recording studios, concerts, festivals, and even large theatres while spending some time on tour. Drew's favorite by far though, has been the chance to work on Broadways and West End shows, as this was a dream come true. Drew is honoured to get to share these experiences from being inside the entertainment industry.
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