C1F3PART 15DOrchestra tax relief
Pt. 15D modified (with application in accordance with s. 19(1)(4) of the amending Act) by Finance Act 2022 (c. 3), s. 19(1)(4)
C1CHAPTER 3Orchestra tax relief
Companies qualifying for orchestra tax relief
1217RACompanies qualifying for orchestra tax relief
1
Subsection (2) applies in the case of an orchestral concert which is not included in a concert series in relation to which an election has been made under section 1217Q(4).
2
A company qualifies for orchestra tax relief in relation to the production of a concert if—
a
the concert is a qualifying orchestral concert,
b
the company is the production company in relation to the concert,
c
the company intends that the concert should be performed live—
i
before the paying public, or
ii
for educational purposes, and
3
In this Part “qualifying orchestral concert” means an orchestral concert—
a
in which the instrumentalists number at least 12, and
b
in which none of the musical instruments to be played, or a minority of those instruments, is electronically or directly amplified.
4
A company qualifies for orchestra tax relief in relation to the production of a concert series if—
a
the concert series is a qualifying orchestral concert series,
b
the company is the production company in relation to every concert in the series,
c
the company intends that all or a high proportion of the concerts in the series should be performed live—
i
before the paying public, or
ii
for educational purposes,
e
the company has made an election under section 1217Q(4) in relation to the series.
5
In this section “qualifying orchestral concert series” means two or more orchestral concerts, all or a high proportion of which are qualifying orchestral concerts.
6
For the purposes of this section a concert is “live” if it is to an audience before whom the musicians are actually present.
F16A
A concert performed before the public is not regarded as being performed before the paying public unless—
a
it is separately ticketed, and
b
it is intended that a significant proportion of the earnings from the concert should be obtained by such ticketing.
6B
For the purposes of subsection (6A), the fact that a ticket covers things reasonably incidental to the concert (such as, for example, a programme or food to be consumed during the course of the performance) does not prevent the concert from being separately ticketed, provided that the price paid can reasonably be apportioned between the concert and those other things.
6C
A concert is only regarded as performed for educational purposes if it is performed entirely or mainly for the purpose of educating the audience.
7
A concert is not regarded as performed for educational purposes if the production company is, or is associated with, a person who—
a
has responsibility for the beneficiaries, or
b
is otherwise connected with the beneficiaries (for instance, by being their employer).
8
For the purposes of subsection (7), a production company is associated with a person (“P”) if—
a
P controls the production company, or
b
P is a company which is controlled by the production company or by a person who also controls the production company.
9
In this section—
“the beneficiaries” means persons for whose benefit the concert will or may be performed;
“control” has the same meaning as in Part 10 of CTA 2010 (see section 450 of that Act).
10
There is further related provision in section 1217RL (tax avoidance arrangements).
1217RBThe F6UK expenditure condition
1
F92
In this Part “UK expenditure” means expenditure on goods or services that are used or consumed in the United Kingdom.
3
Any apportionment of expenditure as between F10expenditure that is and is not UK expenditure for the purposes of this Part is to be made on a just and reasonable basis.
4
The Treasury may by regulations—
a
amend the percentage specified in subsection (1);
b
amend subsection (2).
5
See also sections 1217T and 1217TA (which are about the giving of relief provisionally on the basis that the F13UK expenditure condition will be met).
1217RC“Core expenditure”
1
In this Part “core expenditure”, in relation to the production of a concert or concert series, means expenditure on the activities involved in producing the concert or concert series.
2
The reference in subsection (1) to “expenditure on the activities involved in producing the concert or concert series” includes expenditure on travel to and from a venue which is not a usual venue for concerts produced by the company.
3
But that reference does not include—
a
expenditure on any matters not directly involved with putting on the concert or concerts (for instance, financing, marketing, legal servicesF14, storage, or the provision of incidental goods or services to members of the audience),
b
speculative expenditure on activities not involved with putting on the concert or concerts, and
c
expenditure on the actual performance or performances (for instance, payments to musicians for their performances in the concert or concert series).
F54
For the purposes of subsection (3)(a), expenditure by an educational body on teaching or training participants in a concert or concerts is expenditure on a matter not directly involved with putting on the concert or concerts, except to the extent that the teaching or training takes place as part of a rehearsal for the concert or concerts.
5
In this section, “educational body” includes a body mentioned in section 71.
Pt. 15D inserted (with effect in accordance with Sch. 8 para. 17(1)(a) of the amending Act) by Finance Act 2016 (c. 24), Sch. 8 para. 1