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. Enhanced rates of relief apply until 2024.
For further information see Creative Industry tax reliefs for Corporation Tax and Cultural Relief Rate Rises for Theatre, Orchestra, and Museums and Galleries Exhibition Tax reliefs