Tax relief to support UK’s theatres

The Government has launched its consultation for a new theatre tax relief which will support theatres across the UK, as well as touring productions.

Announced at Budget 2014, the tax relief will offer a relief rate of 25 per cent for qualifying touring productions and 20 percent for other qualifying productions.

Discussing the UK’s theatre industry, Chancellor of the Exchequer, George Osborne, said: “The UK has some of the most innovative and exciting theatre companies in the world and is known for its ground breaking productions. I want to make sure the industry continues to thrive.

“I recognise the cultural and economic value the theatre sector brings to the UK economy. That’s why I am introducing a theatre tax relief which will support our UK theatres up and down the country.”

Adrian Vinken OBE, Chief Executive of the Theatre Royal Plymouth, said: “Any measure that releases the theatre sector’s scarce resources so they can be reinvested to produce more creative productions is to be warmly welcomed. 

"The measure will potentially reap both cultural and economic benefits across the country. 

"It is to be hoped that the administration of the tax relief programme can be made relatively straight forward and look forward to contributing to the Treasury’s consultation exercise to that end.” 

Paul Crewes, Executive Producer and Chief Executive of Cornwall’s Kneehigh Theatre, said: "Kneehigh is a regional touring theatre company that create work of scale and ambition.

"This tax break encourages us to continue to develop and invest in our creative process, allowing us to take work of quality around the UK and the world. Any incentive given to our creative sector is welcomed in these challenging times.

"Certainly having toured as a company for 34 years, it is clear the huge benefits any investment in the arts can bring socially, creatively and financially to its communities, whether they be regional, national, or international."

The theatre tax relief will encourage and support the sector to continue to develop both in London’s West End and across the UK with an emphasis on touring productions which face a higher risk.

This forms part of the Government’s commitment to supporting the creative industries, highlighted in its Plan for Growth as having the potential to drive significant growth in the UK.

The consultation will be open until 8 May with the relief coming into effect on 1 September 2014.