UK Theatre Tax Relief: A Permanent Boost for the Stage

Late last week, the Chancellor in the United Kingdom (UK) announced exciting news which the theatre industry welcomed with open arms; a permanent extension for the increased theatre tax relief rates for productions produced in the UK.

In March of 2023, the higher rates had been extended, but were scheduled to sunset in April 2025. This announcement removes the sunset provisions, making the enhanced rates permanent at 45% for touring productions and 40% for sit-down productions.  The theatre tax relief takes the form of a refundable tax credit paid to the production entity now at either 45% or 40%, based on a percentage of eligible production costs.

This favorable change is the result of efforts by The Society of London Theatre, UK Theatres, and other industry supporters to demonstrate the importance of the enhanced rates helping to spur investment in the cultural sector. The permanent enhancement of the credit has been embraced by producers and theatre owners who note the significant effect the relief will have economically, socially, and culturally within the United Kingdom and beyond. The extension of the tax relief was announced to also be applicable for film and high-end TV. It was noted that over £85 million of theatre credits had been taken in the last year alone.

The increased theatre tax relief rates undoubtedly make the UK an attractive market to produce shows. At the same time, they place even greater importance on properly structuring U.S. funded productions taking place in the UK to maximize the enhanced value of the tax credits.

Please reach out to us with any questions regarding structuring your next production in the United Kingdom.

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For more information on this topic, please contact a member of Withum’s Theatre and Entertainment Services Team.