Theatre Tax Relief: Atek's Quick Guide to Relief Rates & More | Atek Accounting

Many theatre production companies are missing out on Theatre Tax Relief – which currently has the highest rates of relief (until next April). Do you know if you are eligible to claim this relief?

See our Quick Guide for more details >

What is Theatre Tax Relief?

In 2014, the government initiated a new tax relief for theatre production companies. Recognising the value that the theatre industry adds to the UK economy, this relief is intended to boost investment in the creative sector. 20,395 productions have claimed this relief since 2014.

Theatre Tax Relief allows you to claim back some of the money spent on making shows. You can claim these additional deductions in your company’s tax return to reduce the amount of Corporation Tax due. This relief allows you to make more investment the production and supports the development of new and innovative productions.

Theatre Tax Relief Rates

The initial tax relief rates in 2014 were set at 20% non-touring and 25% touring.  During Covid the Theatre Tax Relief rates were increased to 40%/45% to help offset the impact of the pandemic and the rates were set to taper back to the lower levels of 20/25% by 2025.

However, some good news in the Spring Budget 2024 included an announcement that the higher rates for TTR would remain.  In 2024, the rates are 45% non-touring and 50% for touring productions. In 2025, the rates will be 40% non-touring and 45% touring – and the rates will remain at this level permanently.

Orchestra Tax Relief (OTR) and Museums and Galleries Exhibition Tax Relief (MGETR) will also be permanently set at 40% (for non-touring productions) and 45% (for touring productions and all orchestra productions).

Atek Can Help

At Atek Accounting, we’re passionate about supporting businesses in the performing arts industry. We created Atek’s Quick Guide to help explain the tax incentive that is available. While there are quite a few rules surrounding eligibility, the potential cost savings are significant. It’s definitely worthwhile reviewing whether you could claim. Give us a call and we can check to see if you are eligible and help you make the claim.