The Society of London Theatre (SOLT) & UK Theatre welcomes the positive amendments, improvements and clarity in today’s Finance Bill. We appreciate the Government for responding to our concerns regarding the initial draft proposals that could have significantly hampered the effectiveness and value of Theatre Tax Relief (TTR).
Thank you to our members for collaborating with us in presenting a compelling case to Government, underscoring the indispensable role of TTR in sustaining andenriching the landscape of UK theatre nationwide.
Previously, we were concerned with plans to only allow companies operating as a ‘going concern’ to claim TTR. However, the revised Bill now only limits claims from companies that are in liquidation or administration. Following our advocacy efforts, those looking to claim TTR will need to disclose connected party transactions and charge for those at an arm’s length price, marking a significant improvement from initial proposals. Although the Government plans to refine the definition of a theatrical production, this adjustment is aimed at preserving the emphasis on live performances. Clear guidance will be provided which we will work in partnership with the Government to develop.
While today marks a victory for the theatre sector, our ongoing campaign to maintain the higher rate of TTR will persist, recognising its pivotal role in ensuring the viability and vibrancy of our sector.
In the coming months we will actively engage with our members, Government and HMRC to highlight the economic growth and benefits, both for audiences and broader communities, that this crucial tax relief delivers.