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.
ENDS
Notes to editors:
You can read UK Music’s full Budget submission to the Chancellor
here.
