OTR70010 - Orchestra Tax Relief: calculation: introduction

Orchestra Tax Relief (OTR) is only available to Orchestral Production Companies (OPCs) that undertake qualifying concerts.

A company meeting the definition of an OPC is entitled to claim OTR on European core expenditure on a concert or series of concerts provided:

  • the concert or series is intended to be performed live before paying members of the general public, or provided for educational purposes
  • the concert or series is one that is a qualifying concert or series and
  • not less than 10% of the total core expenditure is UK expenditure

If the OPC is in administration or liquidation, it cannot make a claim at that time, but it can make a claim later if it is no longer in administration or liquidation. HMRC will correct and remove any claims made by companies in administration or liquidation.

Prior to 1 April 2024, relief was based on European expenditure instead of UK expenditure. Please see OTR60050 and OTR60070 for details. Also, the minimum expenditure condition instead required at least 25% of core expenditure to be European expenditure. Please see OTR50040 and OTR50045 for details.


Benefits of OTR: additional deduction and orchestra tax credit

An OPC entitled to OTR can claim an additional deduction in computing its taxable profits relating to a separate orchestral trade. .

The additional deduction can:

  • reduce the taxable profits of the separate orchestral trade (so that the company pays less tax), or
  • create or increase a tax loss, which the company can surrender in return for a payable Orchestra Tax Credit (OTC).


OTR only available to companies

OTR is not available to individuals, either alone or within partnerships, or to investors, financial institutions and those whose involvement in concert production is confined to providing or arranging finance.

The purpose of targeting the relief exclusively at OPCs is to ensure that Government support is delivered directly to concert production and is not used as a means of avoiding tax.  It also ensures that such support is delivered to production activity in its entirety.


Core expenditure before 1 April 2016

OTR was introduced from 1 April 2016. Only expenditure incurred after this date is eligible for an additional deduction.