Theatres: Tax Allowances

The Government recognises the importance of the creative industries, including the key role they play in driving economic growth.

We support our world-leading theatre sector through the tax system and through funding. Since 1 April 2025, Theatre Tax Relief (TTR) on production costs has been set at the rates of 45 per cent for touring productions and 40 per cent for non-touring productions. These are the most generous rates of relief specifically for theatres anywhere in the world and the relief provided £261 million of relief in 2023/24. On top of the tax relief, we support theatre through Arts Council England, which awarded £146.8 million in 2024/25

HMRC does not approve or certify claims for Theatre Tax Relief. Claims are made through the Corporation Tax Self-Assessment regime, under which companies are responsible for assessing their tax liability, including eligibility for relief

In line with HMRC's overall approach to self-assessment regimes, processing of a return or payment of relief does not constitute acceptance or approval as HMRC may subsequently identify a risk that needs to be addressed

HMRC operates a risk based compliance regime for all Creative Industry tax reliefs, combining targeted interventions and a range of compliance powers to identify and tackle non compliance while ensuring claims are processed promptly.

All Theatre Tax Relief claims are subject to risk assessment prior to payment to determine whether further compliance checks are required. Where potential inaccuracies or risks are identified, HMRC may open an enquiry within the statutory time limits

HMRC may also undertake post payment compliance checks where risk or non-compliant behaviour is identified. Where a claim is found to be invalid, HMRC will take action to recover amounts paid in line with statutory provisions.