UK budget extends tax relief for orchestras for further two years

The UK chancellor today announced his spring budget, which sees orchestras, theatres, museums and galleries continuing to receive tax reliefs for a further two years. The current level of 45% (for non-touring productions) and 50% (for touring productions) will be maintained until April 2025. The rates will then move to 30% and 35% respectively from April 2025, before dropping to 20% and 25% from April 2026.

Chancellor Jeremy Hunt delivered the news to the House of Commons earlier today. ’Because our theatres, orchestras and museums do such a brilliant job at attracting tourists to London and the UK, I will extended for another two years their current 45% and 50% reliefs.’

The Musicians’ Union welcomed the announcement, having previously lobbied for the higher rates of 45% and 50% to be extended to support the sector recover from the impacts of Covid-19 and the cost of living crisis.

MU General Secretary Naomi Pohl spoke out in favour of the decision. ’The announcement by Arts Council England in the autumn, and the BBC’s proposals to make cuts to its performing groups in England last week, are a stark reminder of the difficulties faced by arts organisations in the current climate, so this extra injection of cash is a vital lifeline for an important sector.’

Find detailed guidance on how to claim orchestra tax relief in the government’s orchestra tax relief manual.