Take action: New laws could potentially damage TTR

Please write to your MP to highlight SOLT & UK Theatre’s response to new laws which could potentially damage TTR

On Tuesday 12 September, SOLT & UK Theatre submitted a formal response to a HM Treasury and HMRC consultation regarding draft legislative changes to part 15C of the Corporation Tax Act 2009 – Theatrical Productions.

This is a crucial section of legislation for the theatre sector, as it contains all the primary legislation (the law) regarding Theatre Tax Relief.

The proposed changes are detailed here and here.

In short, SOLT & UK Theatre have objected to 3 significant changes:

  • An amendment that changes the language around the level of audience participation for qualifying productions
  • An amendment that would exclude the ‘profit’ element of connected party transactions from qualifying costs for the purposes of TTR
  • An amendment that would state that a company must be a going concern to claim TTR.

Were these changes brought into law, they would have a significant adverse impact on the delivery and success of TTR as a measure to boost growth and activity in the theatre sector.

SOLT & UK Theatre’s response to the proposed changes can be found here.

As you know, TTR is vital to the sector –  in delivering growth, supporting employment and boosting investment. SOLT & UK Theatre will always work to protect and enhance the relief.

SOLT & UK Theatre have objected formally through our response and provided mitigations/alternatives to the changes proposed.

SOLT & UK Theatre are also engaged in a positive dialogue with civil servants in HM Treasury and HMRC regarding the impact of the proposed changes. We expect this dialogue to continue as our response is reviewed.

However, to ensure that our concerns are heard, we must also engage on a political level. To that end, we are asking you to write to your MP, highlighting our response and asking them to share your concern with the relevant Minister – Victoria Atkins.

A template email you can use to email your MP can be found here.

Should you have any questions about this issue or our response, please contact david@soltukt.co.uk.