Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of changes to tax relief for orchestras on (a) the financial sustainability of British touring orchestras, (b) profits from international tours and (c) funding needs for orchestras whose funding model is dependent on income from international touring.

Orchestra tax relief is available for costs incurred on goods or services that are used or consumed in the UK. This replaces the previous rule that qualifying costs were those incurred on goods or services provided from the UK or the European Economic Area (EEA).

To ease the transition to the new rule, orchestras with concerts in train on 1 April 2024 were permitted to continue claiming relief on goods or services provided from within the EEA until 31 March 2025.

It is appropriate to refocus orchestra tax relief on UK expenditure now that the UK has left the EU. Under the new rule, the relief incentivises activity within the UK, rather than the UK and the EEA. This does not prevent qualifying productions from touring in the EEA (nor elsewhere).

As with all tax policy changes, a Tax Information and Impact Note was published in 2023 which can be found here: Administrative changes to the creative industry tax reliefs - GOV.UK.

The Government keeps all taxes under review.