Orchestra tax relief

Orchestra Tax Relief is available to the company that puts on a qualifying orchestral concert: a live concert performed mainly by at least 12 instrumentalists, most of whose instruments are not electronically amplified, for paying members of the public or for educational purposes. The company gets an extra deduction equal to the lower of 80% of total core expenditure and UK core expenditure, and any resulting loss can be surrendered for a payable credit at 45% for periods from 1 April 2025.

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The relief is in Part 15D of the Corporation Tax Act 2009 and took effect from 1 April 2016 under Finance Act 2016. Unlike theatre and exhibitions, there is no separate touring rate: every qualifying concert attracts the same 45% credit. HMRC’s Orchestra Tax Relief Manual (OTR) is the main guidance.

What is a qualifying orchestral concert?

Under section 1217PA CTA 2009, a concert is an orchestral concert if it is performed by an orchestra, ensemble, group or band consisting wholly or mainly of instrumentalists who are the primary focus of the concert. To qualify for relief it must also:

involve a minimum of 12 instrumentalists;
have all or most of the instruments not electronically amplified;
be intended to be performed live to the paying public or for educational purposes;
meet the minimum expenditure condition. From 1 April 2024 at least 10% of core costs must relate to activities in the UK; before that, at least 25% had to be spent on goods or services from the UK or the European Economic Area.

A concert is excluded if a main purpose is to advertise goods or services, if it consists of a competition or contest, or if making a relevant recording (one broadcast, released, used as a soundtrack or used in a film) is the main object. HMRC accepts at OTR50020 that a concert that is live streamed can still qualify if a paying audience is present and the performance remains the main object. If plans change so that there is no live audience and streaming becomes the main object, HMRC treats the original concert as abandoned at that point; costs before the change remain eligible but costs afterwards are not.

What does paying public or educational purposes mean?

OTR50030 explains that the intention is tested at the beginning of the production phase. A paying audience exists if the vast majority of tickets for each performance are reasonably available for the general public to buy. Private events, members only events and events with no ticket price that ask for donations do not qualify.

Concerts given solely for educational purposes do not need a paying audience, so a charitable orchestra performing in schools can qualify. The company must show its activities are wholly or mainly educational; having the word education in its articles is not enough. A performance is not treated as educational if the company is, or is associated with, a person responsible for or connected with the audience, such as their employer.

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Which company is the orchestral production company?

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

Is each concert a separate trade, and what is a series election?

For relief purposes each concert is treated as a separate trade. A company can instead elect to have a series of concerts treated as a single concert, which is usually simpler for a season. If the first concert in the series is on or after 1 April 2024, the election must be made before the later of the first concert in the series and the submission of the first return that applies the separate trade treatment to a concert in the series. The election must list all the concerts in the series, can cover more than one accounting period and is irrevocable. Elections are sent by email to the HMRC Creative Industries Unit, and the return should state the date of the election.

Which costs count as core expenditure?

OTR60010 explains that core expenditure is spending on producing the concert or series up to the point of performance, plus travel to and from a venue that is not the company’s usual venue. It excludes:

the cost of the performance itself;
developing the production; and
non producing activities such as financing, marketing, legal services and storage.

The line between rehearsal and performance often needs an apportionment. If players are salaried for both rehearsals and concerts, or a hall is hired for a final rehearsal and the concert, only the rehearsal share is core. HMRC expects a just and reasonable method applied consistently. Costs that are not core still count in the profit or loss of the separate trade.

How are the relief and the credit calculated?

Under section 1217RE CTA 2009 the additional deduction is the lower of 80% of total core expenditure and actual UK core expenditure, meaning core expenditure on goods or services used or consumed in the UK. HMRC’s examples at OTR70020: £1m of core expenditure, all UK, gives an additional deduction of £0.8m; £2m with £1.25m UK gives £1.25m.

If the separate trade makes a loss, the surrenderable loss is the lower of the available loss and the available qualifying expenditure (the additional deduction to date less amounts already surrendered). The credit is 45% of the loss surrendered for periods from 1 April 2025. Before that, concerts entering production from 27 October 2021 had a temporary rate of 50%. An accounting period straddling 1 April 2025 is split into two notional periods.

What does a worked example look like?

Illustration only. A company elects to treat a four concert series as one concert. Core rehearsal and production costs are £300,000, all UK. Performance fees, marketing and other non core costs are £20,000. Ticket income is £150,000.

Item	Amount
Income less all costs (£150,000 less £320,000)	£170,000 loss
Additional deduction (80% of £300,000)	£240,000
Loss after additional deduction	£410,000
Surrenderable loss (lower of £410,000 and £240,000)	£240,000
Orchestra tax credit at 45%	£108,000

The credit equals 36% of core expenditure, the maximum for a loss making production where at least 80% of core costs are UK costs. The £170,000 of loss not surrendered stays within the separate trade.

How do charities and trading subsidiaries claim?

OTR80020 confirms that a not for profit company that qualifies as the production company can claim on the same basis as a commercial company. Charities are exempt from Corporation Tax on charitable trading profits applied to charitable purposes, but the credit is still available. Where a charity uses a wholly owned trading subsidiary, the subsidiary itself must meet the production company conditions; it cannot simply be a vehicle for the claim while the charity does the work, though it may subcontract activities back to the charity. HMRC recommends advice on charitable status and VAT.

How and when is a claim made, and what goes wrong?

Relief is claimed in the Company Tax Return, with the CT600P Creative Industries supplementary page for returns submitted on or after 6 April 2026. The additional information form must give the name and address of the venue for each performance, core costs split between UK or EEA and other costs, a breakdown by category and the production start date. For accounting periods beginning on or after 1 April 2024, a claim can be made, amended or withdrawn up to two years after the end of the period of account; for earlier periods the limit was one year after the filing date.

Common errors include:

counting performance day fees and hall hire as core expenditure;
missing the deadline for a series election, leaving each concert as a separate trade;
treating donation only or invitation only events as public performances;
claiming for line ups in which most instruments are electronically amplified.

For related reading see theatre tax relief, company trading losses and Corporation Tax deadlines.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.