Theatre Tax Relief – New Rates April 2025

Companies that put on qualifying theatrical productions can look to claim additional corporation tax relief by claiming Theatre Tax Relief (TTR).

The relief works by allowing companies to claim an 80% additional deduction for qualifying ‘core expenditure’ (from April 2024 this must relate just to UK activities). Core expenditure relates to expenditure incurred producing and closing down the production, no Theatre Tax Relief is awarded for costs incurred during the running phase of any production.

If a theatre company makes a taxable loss (after accounting for the additional 80% deduction) on its production, the loss can be surrendered for a repayable tax credit which is 45% for non-touring productions and 40% for touring productions. These new permanent rates replaced the planned rates that were originally going to be implemented in April 2025 of 35% (touring) and 30% (non-touring).

Charities that put on qualifying productions can also possibly look to claim the above tax credit despite not having previously paid corporation tax.

The above Theatre Tax Relief claim is made through the company’s corporation tax return and an additional information form will need to be submitted to HMRC.

The above is just a brief overview and there are many conditions in relation to the production that need to be met in order to qualify for TTR. Should you have any further questions on this matter please feel free to get in touch with Joe Wilson on 023 8046 1237 or email Joe Wilson.