Specialist Tax Adviser Aiglon Consulting
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istock_theatre_Izabela Habur

Chancellor to provide tax reliefs for creative sector


The Chancellor has announced temporary changes for the following reliefs: Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and, Museums and Galleries Exhibition Tax Relief (MGETR).

27th Oct 2021
Specialist Tax Adviser Aiglon Consulting
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Sunak extended his 'levelling up' agenda to making creative tax reliefs "more generous". 

These reliefs are part of a group of reliefs often referred to as the ‘creative sector reliefs’. In broad terms they provide eligible production companies with enhanced relief, either as an additional tax deduction or a payable credit, for qualifying production expenditure. The rate of that relief is to be increased temporarily (see below) to aid in the recovery of the sector following the Covid pandemic.


Current relief

27/10/21 - 31/3/23

2023 - 2024


TTR non-touring 20% 45% 30% 20%
TTR touring 25% 50% 35% 25%
OTR 25% 50% 35% 25%
MGETR non-touring 20% 45% 30% 20%
MGETR touring 25% 50% 35% 25%

The increased rates will apply where production activities commence on or after 27 October 2021. It appears that existing productions will not benefit from these increases.

In addition, the MGETR legislation includes a sunset clause which means that the relief will expire on 31 March 2022 unless it is renewed. The relief will now be extended for a further two years to 31 March 2024, unless it is further renewed before that time.

Film Tax Relief: Changing from theatrical release to broadcast

Film Tax Relief (FTR) is not covered by the changes above but there is a further proposal that will impact some film production companies where there the intention for a theatrical release changes to an intention to broadcast, which would normally be covered by High End TV Relief (HETV) instead.

For the production of a film to qualify for FTR, it must be intended for theatrical release to the paying public at a commercial cinema. This test must be met at the end of every accounting period rather than at the outset. If the intention changes partway through production – for example, the theatrical release is cancelled and the film instead becomes intended for a television broadcast, then the relief would no longer be available for that, or any subsequent accounting period. The film would not be able to retroactively qualify for HETV because that requires there to be a broadcast intention at the start of production.

The current proposal is that film production companies that switch to an intention for broadcast release will be able to continue to receive FTR following the change. 

These changes will be welcomed by eligible businesses in these sectors as they look to recover from the challenges of the pandemic.

Replies (2)

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By kevinringer
28th Oct 2021 17:08

I've never even heard of these. I need to get out more!

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Replying to kevinringer:
By Catherine Newman
29th Oct 2021 15:26

I haven't heard of them either so I need to get out more.

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