BRITISH THEATRE EXECUTIVES are expecting an investment boom in new shows, thanks to the introduction of the latest government tax credits.
Risk-averse investors who had previously shied away from investing in plays, can from this week claim tax relief on pre-production costs on anything from accommodation to costumes and director’s fees and accommodation.
Such an approach will offer an enhanced incentive for theatrical offerings that are initially deemed commercially risky.
This is the fifth element of the government’s creative industry tax reliefs (CITR) offering – a group of reliefs that allow qualifying companies to claim a larger deduction, or in some instances claim a payable tax credit on taxable profits.
They work by increasing the amount of allowable expenditure.
Film tax relief (FTR) was introduced in April 2007 and a brace of additional reliefs were introduced in April 2013 – animation tax relief (ATR) and high-end television tax relief (HTR). HMRC launched a video games tax relief in April this year. A fifth relief for theatre tax relief is to be introduced in autumn 2014.
The subsidy will pay up to 20% of total preproduction costs, which the industry hopes will tempt investors towards riskier productions.
Research also finds that 84% of businesses believe that the government has not provided enough information about digital tax plans
A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls
Firm expands East Anglian team with appointments to the audit practice and private client tax team