Orchestra tax relief consultation

On 23 January 2015, HM Treasury launched a consultation on a new corporation tax relief for orchestras.

To qualify, a company must be engaged in producing live orchestral performances. Relief will be available for costs integral to the creative process and production (such as player fees, rehearsal costs, and venue hire). Indirect expenditure (such marketing or financing) will not qualify, nor will speculative or ordinary running costs.

Only companies within the charge to UK corporation tax will qualify. The company must be responsible for creating and developing the performance content and actively involved in decision-making processes. Charities may claim on the same basis as other companies. At least 25% of qualifying expenditure must relate to EEA ( European Economic Area) expenditure. The consultation paper explains state aid implications and how the relief will interact with existing reliefs.

Comments are invited by 11.45 p.m. on 5 March 2015. Further details will be announced in spring 2015. The relief is due to come into force on 1 April 2016.

It’s ….  “expected to bring real benefits to some of Britain’s more than 175 orchestras.”

Sources: HM Treasury: Orchestra tax relief and Tax relief to support Britain’s world-class orchestras

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