The proposals will mean orchestras will benefit from similar tax concessions to those included in other creative sector tax reliefs supporting films, theatre, animation and video games.

The new tax relief is due to come into force in April 2016 and is modelled on the existing theatre tax relief, offering a corporation tax deduction, or a payable tax credit, on expenditure such as player fees, rehearsal costs and venue hire, including a higher rate for touring productions. The Treasury says that to ensure that the claims process is effective and efficient, it will be possible for orchestras to group together multiple qualifying performances in one tax relief claim.

Chancellor of the Exchequer George Osborne said: ‘I want to make sure our great orchestras continue to thrive. Our new tax relief will encourage orchestras to perform across the whole of the UK – helping secure the future of live performances in the UK.’

Treasury estimates suggest that over 175 orchestras based in the UK are likely to benefit.  Its statistics show that in 2012-13 orchestras played to 4.5m people in the UK in over 3,500 performances and toured in 35 countries. They also played over 10,000 community performances for 600,000 people, half of whom were children or young people.

However, although audiences are growing, orchestras’ income from ticket sales and hires fell by 11% in real terms from 2009-10 to 2012-13.

Mark Pemberton, director of the Association of British Orchestras (ABO), said: ‘Tax relief will make a big difference to our members’ resilience in these challenging times, helping them to continue to offer the very best in British music-making to audiences both here in the UK and abroad.

‘The government’s creative sector tax reliefs have demonstrated that targeted support can make a positive impact, not only in terms of boosting economic activity, but also as a way of promoting British culture and improving the way the UK is viewed around the world.’

The consultation sets out the details of the proposed tax relief and seeks views in key areas of its design, such as  how to define an ‘orchestral performance’.

The suggested definition is ‘a musical ensemble consisting of 14 or more performers and must include players drawn from each of the following four sections: string instruments, woodwind instruments, brass instruments and percussion instruments.’ It excludes ‘entertainment with a competitive element’, performances solely for advertising, recording or broadcast and also the performance of certain genres of music, including pop and rock.

The consultation also asks for views on whether the proposed tax reliefs will have any impact on the funding or subsidies which some orchestras can claim. 

The deadline for comments is 5 March 2015 and the document is here: https://www.gov.uk/government/consultations/orchestra-tax-relief