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D7.1290 Orchestra tax relief—overview

Orchestra tax relief takes two forms, an additional allowable deduction and an orchestra tax credit¹. The additional deduction is the lower of²:

1. Ìý

   •ÌýÌýÌýÌý the expenditure which is qualifying UK expenditure (this was European expenditure (ie qualifying UK or EEA expenditure) prior to April 2024 – see below), or

2. Ìý

   •ÌýÌýÌýÌý 80% of the total amount of qualifying expenditure

Transitional provisions are included in FA 2024, Sch 4, Pt 2, para 12 to facilitate the transition to UK expenditure in the above calculation. The changes have effect for accounting periods ending on or after 1 April 2024 but European expenditure incurred before 1 April 2024 can count as UK expenditure for these purposes³. Production companies with productions that enter production before 1 April 2024 may elect for European expenditure to count as UK expenditure for those productions up to 1 April 2025⁴.

The payable tax credit is⁵:

1. Ìý

   •ÌýÌýÌýÌý 25% of losses surrendered prior to 27 October 2021

2. Ìý

   •