The Chancellor announced a theatre tax relief, effective from September 2014, which will support the qualifying touring productions involved with plays, musicals, opera, ballet and dance at a rate of 25% for touring productions and 20% for other theatre productions.

For those in the film industry, the government confirmed its announcement in the 2013 Autumn Statement to make relief available at 25% on the first £20m of qualifying production expenditure, and 20% thereafter, for small and large budget films from April 2014.

The government will also reduce the minimum UK expenditure requirement from 25% to 10% and will modernise the cultural test, the details of which will be published in Finance Bill 2014.

John Cooney, EY’s head of private client services, said that the announcements included a New Year consultation on a new relief for theatre productions and enhance available reliefs for UK film producers, as well as ensuing the continuing flow of talent with £5m of investment in the National Film and Television school’s Digital Village.