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Theatre Tax Relief (TTR) is a UK tax incentive aimed at supporting the theatre industry by providing tax relief on the production costs of certain theatrical productions. It was introduced in the Finance Act 2014 and is administered by HM Revenue & Customs (HMRC).

Theatre Tax Relief Rates

The rates of TTR were increased after Covid to help support the creative industry that had been impacted so signficantly during the pandemic. These rates were set to decrease gradually after April 2024 to return to pre-pandemic levels of 20% and 25% by 2026.  However, in the Spring Budget 2024, the Government announced new permanent rates for TTR. Rather than reducing the rates over subsequent years, they will be set at 40% and 45% for touring productions and 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).

Qualifying for Theatre Tax Relief

To qualify for TTR, a theatrical production must meet certain criteria, including:

1. It must be a live performance of a dramatic piece, comedy, ballet, opera, or musical.
2. It must be intended for general release to the public and be performed to a paying audience or for educational purposes.
3. From 1 April 2024, at least 10% of the ‘core costs’ must relate to activities in the UK.

If a theatrical production meets these criteria, it may be eligible for Theatre Tax Relief on certain production costs, such as salaries for cast and crew, set construction, costumes, lighting and sound equipment, marketing and publicity, and theatre hire.

The amount of tax relief available is calculated as a percentage of the eligible expenditure incurred by the production company and can range from 40% to 45%. The relief can be claimed by the production company or by any individual or company that has invested in the production.

Atek Can Help

Theatre Tax Relief is a valuable incentive for the theatre industry, helping to encourage the production of new and innovative theatrical works and supporting the cultural and creative landscape of the UK.

If you are not claiming this relief, we can help you determine if you qualify. The criteria is very specific, but can have a significant impact on your financials if you are able to claim. Over 20,000 businesses have claimed since the inception in 2014. Don’t miss out on this potential tax incentive for your production.