Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibition Tax Relief — claimed properly, and defended if HMRC asks. TaxDigit acts for producing theatres, touring companies, orchestras, opera and dance companies, festivals and exhibiting museums and galleries across the UK.
The rates are now permanent
The temporary uplifted rates were made permanent from 1 April 2025, and the sunset clause that would have ended Museums and Galleries Exhibition Tax Relief has been removed. For the first time in years these reliefs can be built into a business plan rather than a one-off claim.
| Relief | Non-touring | Touring |
|---|---|---|
| Theatre Tax Relief (TTR) | 40% | 45% |
| Orchestra Tax Relief (OTR) | 45% — a single rate, with no touring distinction | |
| Museums and Galleries Exhibition Tax Relief (MGETR) | 40% | 45% |
How the claim is actually built
- Separate trade per production — each qualifying production, concert series or exhibition is treated as its own trade, with its own profit and loss. Most lost relief traces back to a chart of accounts that never separated them.
- Core expenditure — producing, running and closing the production. Qualifying expenditure is limited to 80% of core costs, so the last 20% is never in the claim however it is spent.
- What sits outside — ordinary running costs of the venue, marketing and financing costs, and speculative development that never becomes a production.
- Touring status — the higher rate depends on meeting the touring conditions at the outset. It is a planning decision, not a labelling exercise after the fact.
- Charitable companies — most producing theatres and orchestras are charities. The relief is claimed through the charitable company's corporation tax return, and the interaction with charitable exemptions needs care.
Who can claim
- Theatre — plays, musicals, opera, ballet and dance produced for a paying audience or for educational purposes, including touring productions and one-off runs.
- Orchestra — concerts and concert series by orchestras, ensembles, groups and bands, where instrumentalists are the primary focus.
- Museums and galleries — curated public exhibitions, including touring exhibitions at multiple venues.
Claims that survive an enquiry
HMRC's compliance activity on the creative reliefs has been sustained, and the questions are consistent: was there a separate trade, was the expenditure core, was the touring condition met, and does the bookkeeping support the split. We build claims from the production accounts rather than from a spreadsheet written afterwards, keep the evidence pack with the claim, and handle the correspondence if a claim is opened.
Beyond the claim
- Statutory accounts and independent examination or audit for charitable companies and CIOs
- Gift Aid, including donations, membership schemes and the retail Gift Aid mechanics
- Partial exemption and VAT on ticketing, bar and catering income, and the cultural exemption
- Payroll for casts, crews and musicians, including short engagements and self-employment status
- Payments to overseas performers and conductors — see non-resident entertainers tax
This page sits inside our media, entertainment and creative industries practice, alongside music industry accountants and actors and entertainers.
Frequently asked questions
What are the current Theatre Tax Relief rates?
From 1 April 2025 the rates are permanent at 40% for non-touring productions and 45% for touring productions. There is no longer a scheduled reduction to plan around.
What is the Orchestra Tax Relief rate?
Orchestra Tax Relief is a single permanent rate of 45%, with no touring and non-touring distinction, from 1 April 2025.
Has Museums and Galleries Exhibition Tax Relief been abolished?
No. MGETR was due to end under a sunset clause, but that clause has been removed and the relief is now permanent, at 40% for non-touring exhibitions and 45% for touring exhibitions.
We are a charity. Can we still claim?
Yes. Charitable companies claim these reliefs through their corporation tax return, and a charity with no corporation tax liability can still receive a payable credit. The interaction with charitable exemptions and with Gift Aid needs to be handled deliberately, which is a large part of what we do for arts clients.
What counts as core expenditure?
Broadly, the costs of producing, running and closing the production, concert or exhibition. Qualifying expenditure is limited to 80% of core expenditure. Venue running costs, marketing, financing costs and speculative development that never reaches production are outside the claim.
What makes a production touring?
The touring conditions have to be met by design — the intention at the outset about the number of venues or performances. Because the higher rate depends on it, this is a decision to take before the production is set up, not a description applied afterwards.
How long does a claim take to pay out?
Claims go in with the company tax return for the period. HMRC has published processing targets for creative industry claims but timing varies, and a claim that arrives with a clean evidence pack moves faster than one that triggers questions. We plan cash flow on a realistic date, not an optimistic one.
Claim the relief your production has earned
Talk to accountants who build creative tax relief claims from the production accounts up.
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