Orchestras: Tax Allowances

Treasury written question – answered at on 14 November 2023.

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Photo of Barbara Keeley Barbara Keeley Shadow Minister (Cabinet Office), Shadow Minister (Culture, Media and Sport)

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the proposed changes to Orchestra Tax Relief announced in the Spring Budget 2023 on the economic sustainability of orchestras.

Photo of Nigel Huddleston Nigel Huddleston The Financial Secretary to the Treasury

Orchestras are a crucial part of the UK arts sector. That is why at Spring Budget 2023, the government went further to support orchestras by announcing a 2-year extension to the current 45% (for non-touring productions) and 50% (for touring productions) rates of orchestra tax relief (OTR).

From April 2024, qualifying expenditure for OTR will be that incurred on goods and services used or consumed in the UK. To qualify, 10% of expenditure on a production must be incurred on goods or services that are used or consumed in the UK. This is a significant decrease from the current requirement for 25% of expenditure to be incurred on goods or services in the UK or EEA. The government expects this will support companies in adjusting to the new rules.

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