27 October 2021 
Andrea Marshall, Tax Specialist
There were three different Budget policy papers on this area:
Cultural Relief Rate Rises for Theatre, Orchestra, and Museums and Galleries Exhibition Tax reliefs – this applies to Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR), and Museums and Galleries Exhibition Tax Relief (MGETR). Rates will be increased as per the table below before returning to current levels from 1 April 2024.
Rate % | Current Rates | From 27 October 2021 to 31 March 2023 | 2023 to 2024 | 2024 to 2025 (and onwards) |
TTR: non-touring / touring | 20/25 | 45/50 | 30/35 | 20/25 |
OTR | 25 | 50 | 35 | 25 |
MGETR: non-touring / touring | 20/25 | 45/50 | 30/35 | 20/25 |
Extension to Museum and Galleries Exhibition Tax Relief sunset clause – this applies to incorporated museums, galleries and other qualifying heritage institutions, including those run as charitable companies, their subsidiaries or those with trading subsidiaries that are run under the control of a local authority, that are directly involved in the production of new exhibitions. The Museums and Galleries Exhibition Tax Relief (MGETR) includes a sunset clause which means that the relief will expire in April 2022 unless renewed. The relief will be extended to 31 March 2024 to continue to benefit the sector.
Theatre, Orchestra, and Museums and Galleries Exhibition tax reliefs - These rules allow eligible companies engaged in the production of qualifying theatrical productions, orchestral concerts, and museum and gallery exhibitions to claim an additional deduction, and where that additional deduction results in a loss, to surrender those losses for a payable tax credit. Legislation will be introduced in Finance Bill 2021-22 to amend Parts 15C, 15D and 15E of the Corporation Tax Act 2009, to better target the cultural reliefs and ensure that they continue to be safeguarded from abuse.
