Autumn Budget: Changes to Creative Tax Reliefs

Creative tax reliefs have been made even more generous following the Autumn Budget.  Find out here if your company qualifies for these reliefs

The Chancellor has announced a temporary increase in the rates of relief for the following tax reliefs:

Theatre Tax Relief (TTR)

• Non-touring (27 October 2021 to 31 March 2023) – 45% (formerly 20%)
• Non-touring (1 April 2023 to 31 March 2024) – 30%
• Non-touring (From 1 April 2024) – 20%
• Touring (27 October 2021 to 31 March 2023) – 50% (formerly 25%)
• Touring (1 April 2023 to 31 March 2024) – 35%
• Touring (From 1 April 2024) – 25%

Museums and Galleries Exhibition Tax Relief (MGETR)

• Non-touring (27 October 2021 to 31 March 2023) – 45% (formerly 20%)
• Non-touring (1 April 2023 to 31 March 2024) – 30%
• Non-touring (From 1 April 2024) – 20%
• Touring (27 October 2021 to 31 March 2023) – 50% (formerly 25%)
• Touring (1 April 2023 to 31 March 2024) – 35%
• Touring (From 1 April 2024) – 0%

The Finance Bill will also extend the sunset clause for MGETR for a further two years until 31 March 2024.

Orchestra Tax Relief (OTR)

• Expenditure from 27 October to 31 March 2023 – 50% (formerly 25%)
• Expenditure from 1 April 2023 to 31 March 2024 – 35%
• Expenditure from 1 April 2024 – 25%

The Finance Bill will also implement anti-avoidance changes to better target these reliefs and ensure they are safeguarded from abuse.  These changes will apply to companies entering into productions from 1 April 2022.

What are Creative tax reliefs?

Creative tax reliefs are a group of 8 corporation tax reliefs that were devised by the UK government to help and support the UK creative industries to grow.  The reliefs are as follows:

• Film Tax Relief
• High-end Television Tax Relief
• Children’s Television Tax Relief
• Animation Tax Relief
• Video games Tax Relief
• Theatre Tax Relief
• Orchestra Tax Relief
• Museum and Gallery Exhibition Tax Relief

Broadly speaking, these creative tax reliefs enables your company to increase its allowable expenditure by way of an enhanced deduction which can reduce the amount of Corporation Tax your company has to pay.

If your company makes a loss as a result of the claim, you may be able to surrender the loss and convert some or all of it into a payable tax credit.

How can we help?

At Hawsons our team of experts can take care of your creative tax relief claim for you so you do not have to worry about your claim.

Our team will complete the claim process for you to include the preparation and the final submission of your claim. We will also use our expert knowledge to investigate whether there are any other tax reliefs that could apply to supplement your claim.

If you would like to find out if your business is eligible for a creative tax relief claim please book your free initial meeting here.