A performance of a pantomime. A man dressed as a pirate lies on the floor with a woman in a tutu dancing beside him

Performances that involve audience interaction could be affected by legislative proposals, SOLT & UK Theatre say

Photo: David Munn

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Theatre productions paused amid fears of tax law changes

Government says it wants to make changes to legislation around cultural tax reliefs to "provide clarity to the industry," but there are concerns the move could be damaging to the theatre industry.

Neil Puffett
3 min read

Proposed changes to legislation around Theatre Tax Relief have resulted in some productions being paused, with SOLT & UK Theatre warning that unless they are dropped or amended, they could stunt growth in the sector.

In the Spring Budget this year, the government extended the temporary higher rates of relief of three Corporation Tax reliefs, collectively referred to as the ‘cultural reliefs ’ which includes Theatre Tax Relief (TTR), a move welcomed by the sector.

However, several changes to the related legislation, which would take effect from April 2024, are also proposed. These include excluding productions from TTR where "the main focus is not observing the performance".

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The government has said the changes will "provide clarity to the industry and ensure the fairness and success of the cultural reliefs".

But responding to a consultation on the proposals, SOLT & UK Theatre has said that they could be potentially damaging for the sector.

They have said that leading producers of immersive and experiential work have "ceased development of new productions" until the proposed changes to the clause relating to audience participation have either been clarified or withdrawn.

"The draft legislation has already caused significant concern in the theatre sector," a statement published by SOLT said.

"Were these changes brought into law, they would have a significant adverse impact on the delivery and success of TTR as a measure to boost growth and activity in the theatre sector.

"SOLT & UK Theatre are aware of productions in development that have been paused pending the outcome of this legislative process, as, if adopted, a number of the proposed changes will make those productions unviable."

"Within this stated policy purpose, it could be argued that pantomime should be excluded as audiences are often invited to participate, either through call-or-response interaction with performers or individual audience members invited onto stage to participate in a scene."

Solt & UK Theatre is asking people within the sector to write to their MP highlighting the issue and asking them to share it with the relevant government Minister, Victoria Atkins.

A Treasury spokesperson said: “We are carefully reviewing the consultation responses received and intend to have an ongoing dialogue with industry on the sections that have attracted comment. 

"It is vital that the reliefs are sustainable, as the proposed changes are not intended to reduce the generosity of relief, but to ensure they are robust against abuse.”