As an Orchestra there are a number of tax reliefs you are entitled to. The relief apply for Corporation Tax.
Orchestra tax relief came into effect on the 1st April 2016.
Key features of Orchestra Tax relief
· Companies that qualify for orchestra tax relief must be engaged in the production of live orchestral performances.
· Tax relief is given in respect of the creative and production costs incurred in the production of live orchestral performances or commissioning new musical work. Rehearsal costs are included, however performance costs are not.
· There is no distinction made between touring and non-touring performances
· It is possible for orchestras can group together a series of qualifying performances in one tax relief claim
Orchestras cannot claim Orchestra Tax Relief if:
· A key purpose of the performance is to advertise or promote any goods or services
· A key objective of the performance if to the making of a relevant recording or broadcast
· The performance consists of or includes competition or contest
Companies are eligible for Orchestra tax relief if they are within the charge to UK corporation tax and are the production company of the relevant concert.
Therefore the company should:
· Be directly involved in the development of an orchestra's performance, making effective creative, technical and artistic contributions.
· Be actively involved in the decision making process to deliver the performance
· Be responsible for employing or engaging the performers.
· Directly negotiate for, contract for and pay for rights, goods and services in relation to the concert.