The Arts Council has published its independent report on the impact of Cultural Tax Reliefs – ‘Cultural Tax Reliefs Impact Review’ – produced by Nordicity, Ipsos and SafferyLLP.
The Arts Council writes:
The UK’s cultural tax reliefs – Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums & Galleries Exhibition Tax Relief (MGETR) – were introduced between 2014 and 2017 to support cultural and creative activities through enhanced deductions that reduce taxable profits.
In October 2021, in response to the economic impact of COVID-19, the government temporarily increased the headline rates of these reliefs to help the sector recover. Under the uplift, touring productions and orchestral projects qualified for 50% relief, and non-touring productions qualified for 45% relief, more than doubling the previous rates.
The enhanced rates were originally planned to taper back down from 2023 onwards and eventually return to pre-pandemic levels by 2026/27. However, in the Spring Budget 2024, the UK government confirmed that higher rates will instead be made permanent from 1 April 2025: relief is now set at 45% for touring productions and all orchestral productions and 40% for non-touring productions. These are the highest rates of relief specifically for theatres, orchestras, and museums and galleries anywhere in the world.
Arts Council England – in partnership with Art Fund, Arts Council Northern Ireland, Arts Council Wales, Association of British Orchestras, Association of Independent Museums, Contemporary Visual Arts Network, Creative Scotland, Department for Culture, Media & Sport, Museums Association, National Museum Directors Council, National Lottery Heritage Fund, One Dance UK, SOLT/UK Theatre – commissioned Nordicity, Ipsos and Saffery LLP to conduct an independent evaluation of the impact of these cultural tax reliefs on the UK.
The independent review focuses on the impact of the cultural tax reliefs and the impact of the enhanced relief rates against economic, cultural, and social outcomes.
