Cultural Tax Reliefs
Organisations may qualify for one of eight cultural tax reliefs. They include theatre, orchestra and exhibition schemes. The tax reliefs are processed through the corporate tax system, even though the organisation may not be liable to corporation tax. This means that a qualifying cultural organisation can enhance its expenditure which creates an additional deduction for tax purposes, thus reducing any profit or surplus to such an extent that a payment becomes due to the organisation. Non corporate bodies (such as trusts and societies) do not qualify.
A board should always consider applying for all relevant reliefs. In the April 2024 budget rates of tax relief were permanently set at 45 %/40% for theatres, museums, and galleries’ touring/non-touring productions and at 45%/40% for orchestras from 1 April 2025.
For further information see:
- Creative Industry tax reliefs for Corporation Tax
- Cultural Relief Rate Rises for Theatre, Orchestra, and Museums and Galleries Exhibition Tax reliefs
