It has been two years since the introduction of the Theatre Tax Relief in the Finance Bill 2014. Let’s look at what this new tax relief has meant for theatres throughout the UK.
What is Theatre Tax Relief (TTR)?
TTR was introduced in the Finance Bill in 2014. TTR allows for production companies to claim against any qualifying expenditure which occurred after 01/09/2014. For further guidance from HMRC, and detailed explanations of qualifying expenditure, you can read more about the rules and regulations behind TTR here
Has Theatre Tax Relief helped?
The introduction of TTR has allowed production companies the opportunity to fund more productions, and blossom in a way they had failed to before; due to the availability of more funds. HMRC estimated that an impressive £25 million had been reintroduced to the theatres across the UK in the first year the relief was in effect.
However, TTR has not wholly been greatly received. Some have complained that the TTR has complicated qualifiers; which has led to new deals and integrations within the industry causing negative overall impacts on the industry.
What are your thoughts on TTR? Has it helped your theatre production company blossom, or are you confused by the different regulations?
If you’re confused by the TTR regulations, or think you might be entitled to a different kind of tax relief, you should consult a financial advisor or accountant.