The Theatre Tax Relief will follow the basic model of the existing Film Tax Relief to operate on the basis of a “payable tax credit”. Theatre productions are eligible for a 20% rate of relief while touring productions are eligible to 25% rate of relief. Relief will extend to cover a range of live performance art forms including plays, musicals, opera, ballet and dance.
The relief will be applied on a per-production basis to 80% of a show’s eligible capital expenditure – which includes all costs required to mount a show, apart from investment required for areas such as marketing, advertising and contingency funds.
The relief will likely be legislated for in the 2014 Finance Bill and introduced with effect from September 2014. A consultation on the relief will begin shortly.