The rates of relief available under the existing rules will be increased for theatre, orchestra and museum and gallery tax reliefs (together, the ‘cultural reliefs’). The current rates of 20/25% will increase temporarily to 45/50% from 27 October 2021. The rates will start to taper down from April 2023 before returning to current levels by 2024. The rises will apply where production activities begin after 27 October 2021.
Companies producing theatre or orchestral productions, or companies hosting museum and gallery exhibitions.
The enhanced rates of relief will have effect from 27 October 2021, with the tapered rates commencing from 1 April 2023 returning to current levels by 2024.
Theatres, orchestras and museums/galleries are a number of institutions of importance to the UK government that have suffered heavily due to enforced closures resulting from the Covid-19 pandemic. Therefore these proposed measures will be important to help the industry bounce back. The doubling of the rates is a welcome measure and will help provide vital support to the sector.