Claiming Orchestra Tax Relief: HMRC updates & the Online Form

If your company produces orchestral concerts, you may be entitled to claim Orchestra Tax Relief (OTR) - a generous incentive offered by HMRC to support the creative arts.

As part of their updated guidance for the creative industries, HMRC has refreshed its page on claiming OTR and made it clearer how companies can claim this relief through their Corporation Tax return. Whether you're new to this or looking to tighten up your existing claims, here's what you need to know.

What is Orchestra Tax Relief?

Orchestra Tax Relief allows qualifying companies to claim back a portion of the costs involved in producing live orchestral performances. You don’t have to be a large touring company to benefit - many smaller organisations can qualify too.

Eligible companies which includes charitable companies and CIOs can claim:

• An additional deduction when calculating taxable profits

• Or, if they are loss-making, a payable tax credit (cash refund) based on qualifying expenditure

The Online Form...

This has been mandated since 1st April 2025 and requires a significant level of detail. Here are a few pointers to help you prepare it:

• Make sure the data relating to your orchestral concerts or series is well organised before you start. We find it's easiest to start from actual expenditure and then analyse as follows:

• Identify the expenditure which qualifies as qualifying core expenditure.

• Then identify the % of qualifying core expenditure which is eligible for Enhancement.

• Typically for smaller orchestras this might be a proportion of an all-inclusive fee paid to your musicians for the day. The fee will reflect an element of rehearsal as well as the performance. So this is where you can apportion that accurately.

• Once you've identified the appropriate amount of qualifying core expenditure you can calculate the 80% enhanced value.

• From there, you can determine whether there has been a surrenderable loss in the concert or series.

• And finally, whether the lesser amount available for surrender is the loss itself or the enhanced amount.

  
  

A few final directions:

• Evidence of creative control and responsibility for production. Only one production company can make a claim for OTR on any given concert or series. So if you're partnering with another organisation, make sure this is agreed first!

• Decide if you want to claim individual concerts or claim for a concert series as a whole and make that election as part of your submission.

• Make sure you have analysed your data to show whether it is EEA or UK expenditure as there are new and updated requirements on this.

• Have the details of dates of concerts, tours, series etc to hand before you start the online form.

• Information on any connected party transactions as this also needs to be disclosed.

Read our Classical Music magazine article to ensure the performance meets the qualifying criteria - for example, it must include a minimum number of instrumentalists and consist mostly of live instrumental music with no significant dramatic content or narrative. You can find that linked HERE.

Updated Support from HMRC

The refreshed HMRC guidance includes videos and gives added explanations on:

• The eligibility criteria

• How to calculate the amount of relief

• Where and how to enter it on your Corporation Tax return

You can access the full HMRC guidance here:

Claiming Orchestra Tax Relief for Corporation Tax

Final Note

This is a valuable relief for companies involved in live music production - and it's often underused. If you're unsure whether your organisation qualifies, get in touch with us - we are tax specialists for the creative sector.