UK Music Welcomes Chancellor’s Move To Make Orchestra Tax Relief Permanent

06 March 2024 - Press release

UK Music Interim Chief Executive Tom Kiehl has welcomed Chancellor Jeremy Hunt’s Budget move to make Orchestra Tax Relief (OTR) permanent at a rate of 45%. 

The current temporary 50% rate of OTR was due to taper down from April 2025 and drop eventually to its original rate of 25%. 

However, Chancellor Mr Hunt used his Budget statement on March 6 to announce that OTR would become permanent at 45%. 

The move followed calls from UK Music, the collective voice of the music industry, and its members to do more to support the sector. 

 

UK Music Interim Chief Executive Tom Kiehl said: 
“I welcome that the Chancellor has listened to industry calls to put in place extensions to the orchestras tax relief on a permanent basis. 

“The Government should use this opportunity to clarify our further calls as to whether touring choirs and other singing groups are also eligible for this important relief.

“We welcome the indirect benefit to music of the introduction other creative sector tax reliefs and seek further Government consideration for the introduction of a tax credit to encourage new UK music production.”

Introduced in 2016, OTR is aimed at supporting live orchestral performances. The headline rate was rate uplifted to 50% in 2021 in the wake of Covid and was extended in 2023 for a further two years until April 2025. 

The Musicians’ Union and the Association of British Orchestras were among the many groups that had called on the Chancellor to make the relief permanent.