Orchestra Tax Relief (OTR)

Orchestra tax relief works in a similar way to theatre tax relief but is aimed especially at an orchestral production company.

Claiming a relief from HMRC


A qualifying orchestral company could receive a payment from HMRC equal to a percentage of their production costs to reduce profits or to increase a loss – thus paying less corporation tax.

The orchestral company must be responsible for putting on the concert from start to finish, including employing or engaging the performers. They should be actively engaged in the planning and decision-making of the performance and directly negotiate, contract and pay for rights, goods and services.


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WR Partners has extensive experience in claiming back valuable tax relief for the creative sector.

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What is a qualifying orchestral performance?


  • Are performed by an orchestra, ensemble, group or band consisting wholly or mainly of instrumentalists who are the primary focus of the concert
  • The orchestra should consist of a minimum of 12 instrumentalists
  • All or most of the instruments must not be electronically amplified
  • Are intended to be performed live for the paying public or educational purposes
  • Having at least 25% of core expenditure is on goods or services provided from within the European Economic Area (EEA)

What is the benefit of Orchestra Tax Relief?


The orchestral company will be able to deduct an additional 80% of qualifying production costs from their profits to reduce their profits subject to tax or create a loss that can be surrendered for a cash payment from HMRC.

From 27 October 2021, the rate of payment has increased, from 20% (non-touring productions & exhibitions) and 25% (touring) of the loss surrendered, to 45% and 50% respectively.  From April 2023 the rates will reduce to 30% and 35%, before returning to their current 20% and 25% from 1 April 2024.

FAQs

Where can I get tax advice?

Our tax consultancy team at WR Partners is able to provide tax advice on a wide range of taxes.

What is tax advice?

Tax advice can cover income tax or corporation tax advice on your business profits as well as VAT on business transactions. It can include capital gains tax or stamp duty land tax advice on disposing of a property as well as inheritance tax when you pass assets on to others.

Is tax advice confidential?

Absolutely – we never share tax advice provided to our clients with third parties unless the client specifically requests that we do so.

Can I claim financial advice as a tax deduction?

That will depend on the nature of the advice – there is no hard and fast rule, unfortunately.

How do I work out VAT?

Broadly speaking, VAT is 20% of your taxable supplies. In your VAT return, you can deduct 20% of the associated input VAT and the result is the amount owed to or from HMRC.

What are the types of property tax in the UK?

There are many different types of taxes on property. There are corporate taxes if the property is held by a company, such as corporation tax and the annual tax on enveloped dwellings. There are individual taxes such as income tax on rental profits and capital gains tax if a property is disposed of. There are also transaction taxes (SDLT, LTT or LBTT depending on where the property is in the UK).

Is there a difference between English and Welsh tax systems?

For income tax, the Welsh Government is able to vary the income tax rate to a point. To date, they have chosen to keep the same rate as for taxpayers in England. This means that Welsh taxpayers should identify which country they are paying tax in, in order to pay to the right authority. This can be done through your PAYE code but also it is declared in your self-assessment tax return. There are also differences between the English Stamp Duty Land Tax and the Welsh Land Transaction tax.

How do I reduce my tax?

There are a variety of ways to mitigate a tax charge. Depending on your circumstances this might be by claiming a particular relief or expense against your taxable income or reducing the tax you pay because some types of income or gains attract lower tax rates.

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