Autumn Budget 2021 – Creative industry tax reliefs

The sunset clause for the Museum and Galleries Exhibition Tax Relief (MGETR) was supposed to come into force on 31 March 2022. As part of the Autumn Budget measures, the Chancellor announced that the relief will be extended for another two years to 31 March 2024. This will help encourage the sector just as exhibitions are starting to tour again. The government will also keep the relief under review prior to making a final decision regarding its future.

The MGETR is part of a collection of creative industry tax reliefs (CITR) that allow qualifying companies to claim a larger deduction, or in some circumstances claim a payable tax credit when calculating their taxable profits.

The Chancellor also announced that to support theatres, orchestras, museums and galleries to recover from COVID, tax reliefs for all those sectors will be increased from 27 October 2021 and won’t return to the normal rate until 1 April 2024. The maximum rates will apply until 1 April 2023 and then there will be a further step before reverting to the standard rate from 1 April 2024.

For example, the rates for Theatre Tax Relief (TTR) will increase from 20% (for non-touring productions) and 25% (for touring productions) to 45% and 50% respectively from 27 October 2021. From 1 April 2023, the rates will be 30% and 35%, and rates will return to 20% and 25% on 1 April 2024.

Source: HM Revenue & Customs Thu, 28 Oct 2021 00:00:00 +0100

Latest articles

Notifying cessation of self-employment

Any taxpayers that have ceased to be self-employed must notify HMRC of their change in status. There are a number of steps that must be followed if a taxpayer ceases trading as a sole trader or if they are ending or leaving a business

Submitting CIS nil monthly returns

The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be

Check employment status for tax

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector.

The service provides HMRC’s view if IR35 legislation

Class 1A payment deadline

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. There is no employee contribution payable. If you provided taxable benefits to staff or directors your business is likely to have a