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An orchestral production company may claim an additional deduction in respect of qualifying expenditure¹. For these purposes, 'qualifying expenditure' refers to core expenditure (D7.1291)² that would normally be taken into account³ in calculating the profit or loss of the separate orchestral trade for tax purposes. Expenditure which is otherwise eligible for relief under any of the other creative industry reliefs is not 'qualifying expenditure' for the purpose of this relief⁴.

Expenditure which could be claimed under the merged R&D scheme from 1 April 2024, or as an R&D expenditure credit (RDEC)⁵ or the enhanced revenue deduction for SMEs⁶ (see D1.401 for a summary of these reliefs) is excluded from the definition of qualifying expenditure for orchestral relief for expenditure incurred on or after 1 April 2024⁷.

Also excluded is connected party profit ie profit in excess of the amount that would have been charged if the transaction had occurred between wholly independent parties ie an arm's length price, this includes where the transactions take place through