Orchestra Tax Relief UPdate
ACE Cultural Tax Reliefs Impact Review
The Academy of St Martin in the Fields welcomes the Cultural Tax Reliefs Impact Review, commissioned by Arts Council England, which provides strong evidence of the value delivered by Orchestra Tax Relief (OTR).
The review finds that organisations claiming cultural tax reliefs “earned 162% more income from international activity than those that did not claim CTR”. It also shows that claimant organisations strengthened both their social impact and financial sustainability. More than 77% of surveyed organisations reported that the reliefs “improved their financial position, decreasing their reliance on reserves and increasing their resilience to economic shocks”. In terms of cultural output, organisations claiming CTR delivered an average of 110 additional performances per year compared to those that did not claim.
The report describes OTR as a “measure that could encourage the UK’s orchestras to perform across the whole of the UK and tour internationally, and contribute to ‘improving the way the UK is viewed around the world’.” It identifies a clear and affordable next step: extending OTR to cover international touring and education costs.
Annie Lydford, ASMF CEO, said:
“We welcome the publication of this review and the clear evidence it provides of the impact OTR can have on international touring, cultural diplomacy, and on growing performances and social purpose initiatives across the UK.
We have previously demonstrated that for every £1 of OTR ASMF received relating to its international work, £10 is returned to the UK economy. As an organisation that is not part of Arts Council England’s National Portfolio, international touring is a key part of our business model and enables us to invest meaningfully in our UK programmes – from significant increases in our sessions with people experiencing homelessness and projects supporting the next generation of talented musicians, to extraordinary concerts and community-led music initiatives delivered by our players across the country.
The recent removal of international expenditure from OTR eligibility places this ongoing investment at risk. We are therefore encouraged to see robust evidence being gathered which supports the case for reinstating this provision – for the benefit of arts organisations, audiences and communities across the UK.”