Spring Budget: Changes to theatre, orchestra and museums and galleries exhibitions tax reliefs

Apr 5, 2023
Author: Craig Walker

The Chancellor Jeremy Hunt has announced an extension of the higher rates of tax relief for theatres (TTR), orchestras (OTR), museums and galleries exhibitions (MGETR) for two years to 31 March 2025. In addition, the definition of qualifying expenditure will be changed to “expenditure on goods and services that are consumed in the UK”.

Extending the higher rates of relief

The rates for TTR and MGETR, which were due to taper to 30% (for non-touring productions) and 35% (for touring productions) on 1 April 2023 will remain at 45% and 50% until 31 March 2025.  From 1 April 2025, the rates will be 30% and 35% and the rates will return to 20% and 25% from 1 April 2026.

The rates for OTR will remain at 50% for expenditure taking place from 1 April 2023, reducing to 35% from 1 April 2025 and returning to 25% from 1 April 2026.  MGETR will expire after 31 March 2026 and no expenditure after this date will be eligible for relief.

Rates of relief will be as follows:

Theatre Tax Relief (TTR)

Non-Touring

27 October 2021 to 31 March 2025 – 45%

1 April 2025 to 31 March 2026 – 30%

From 1 April 2026 – 20%

Touring

27 October 2021 to 31 March 2025 – 50%

1 April 2025 to 31 March 2026 – 35%

From 1 April 2026 – 25%

Museums and Galleries Exhibition Tax Relief (MGETR) 

Non-Touring

27 October 2021 to 31 March 2025 – 45%

1 April 2025 to 31 March 2026 – 30%

From 1 April 2026 – 20% * 

Touring

27 October 2021 to 31 March 2025 – 50%

1 April 2025 to 31 March 2026 – 35%

From 1 April 2026 – 25% *

*Please note that MGETR is due to expire on 31 March 2026 unless extended

Orchestra Tax Relief (OTR)

Expenditure

From 27 October 2021 to 31 March 2025 – 50%

From 1 April 2025 to 31 March 2026 – 35%

From 1 April 2026 – 25%

EEA restrictions

The Government will legislate to change the type of expenditure that will qualify for TTR, OTR and MGETR.

From 1 April 2024, the definition of qualifying expenditure will change from “expenditure that is incurred on goods and services provided from within the UK or EER” to “expenditure on goods and services that are used or consumed in the UK”.  There will be a requirement for at least 10% of the expenditure to be on goods and services consumed in the UK, in place of the existing requirement for at least 25% of the core costs to be incurred on goods and services from within the UK or EEA.

Productions that have not concluded by 1 April 2024 will be permitted to continue to claim EEA expenditure under the old definition under 31 March 2025.

How can we help?

At Hawsons our team of experts can take care of your tax relief claim for you.

Our team will complete the claim process for you including the preparation and submission of your claim to HMRC.

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

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Free initial meeting

Craig Walker

Tax Director, Sheffield

cw@hawsons.co.uk
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