Theatre Tax Relief
Since it was first introduced in September 2014, Theatre Tax Relief (TTR) has been pivotal in supporting theatrical productions across the UK. TTR is a relief against corporation tax that can be claimed against qualifying costs when developing and creating new shows. You can find out more about TTR, and how it works, at GOV.UK. TTR supports the development of new and innovative productions, providing audiences with the world-leading creativity the UK theatre sector is renowned for. We estimate that at least £163 million was invested into theatrical productions in 2021-22 as a result of £38 million of Theatre Tax Relief. This is a return of over 4 to 1 for the public purse.
February 2024 Research Report: Impact of higher rate TTR
SOLT & UK Theatre’s February 2024 report demonstrates that the higher rate of TTR, introduced in 2021, turbo-charged the sector’s bounce back from the pandemic. The higher rate is fundamental to enabling UK theatre to be world-leading, growing and innovative, at a time when costs are outstripping revenue growth. Furthermore, it has resulted in the UK theatre sector delivering more and bigger productions, bolder programming, building more robust talent pipelines and reaching more audiences. This has created a more vibrant and dynamic theatre sector that drives economic growth while delivering transformative social good.
The Society of London Theatre (SOLT) and UK Theatre, and our members, recognise the vital importance of Theatre Tax Relief to the sector – this is why we are campaigning to protect TTR.
On Wednesday 6th March 2024, the Chancellor announced a new permanent rate for Theatre Tax Relief of 40% and 45% for touring productions, to replace the planned taper from 1 April 2025 (to 35% and 30% respectively) and the planned return to the pre-pandemic rate (25%/20%) in 2026. These new permanent rates will be transformative for the sector, unlocking more and bigger productions and creating more jobs in our world-class theatre sector. We have warmly welcomed the announcement. Read the letter sent to SOLT & UK Theatre by the Secretary of State for Culture, Media & Sport outlining this new permanent tax relief.
