The Orchestra tax relief applies to expenditure after 31 March 2016.
Updated 30 June 2019
The orchestra tax relief operates on a similar basis to other creative tax credits, with an additional deduction of up to 80% of total qualifying expenditure. To the extent that this results in a loss, it can be surrendered for a ‘payable tax credit’ at the rate of 25%.
Key features of the relief include:
- Qualifying companies must be engaged in the production of live orchestral performances
- Tax relief will be in respect of the creative and production costs incurred in producing live orchestral performances
- At least 25% of core expenditure must be incurred in EEA countries.
Notable exclusions include:
- entertainment with a competitive element
- performances where the sole or main purpose is for advertising
- performances intended solely or mainly for recording or broadcast
Qualifying companies can claim for an orchestral concert or a series of such concerts, either:
An additional tax deduction of 100% of…
- EEA qualifying expenditure, or if less
- 80% of total qualifying expenditure
or, if a loss is surrendered: 25% of the loss up to the amount of the lesser of EEA qualifying expenditure and 80% of qualifying expenditure
An orchestral concert means a concert by an orchestra, ensemble, group or band consisting wholly or mainly of instrumentalists who are the primary focus of the concert.
Qualifying expenditure does not include:
- Expenditure on any matters not directly involved with putting on the concert or concerts (for instance, financing, marketing, legal services or storage),
- Speculative expenditure on activities not involved with putting on the concert or concerts,
- Expenditure on the actual performance or performances (for instance, payments to musicians for their performances in the concert or concert series).
The maximum payable in the case of any undertaking is 50m Euros per year.
- The performance must be for paying public or educational purposes
- Charities are not excluded from this relief.
Please speak to your usual Shipleys contact or one of our experts to determine what you need to do next. Specific advice should be obtained before taking action, or refraining from taking action, on the basis of this information.
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