There are three corporation tax reliefs that are likely to be of interest to relevant arts charities:
- Theatrical productions tax relief
- Orchestral concerts tax relief
- Museums and galleries exhibition tax relief
All three are corporation tax reliefs, so charitable trusts will have to set up a trading subsidiary to be able to take advantage of these. They all work in the same way, by increasing or enhancing the amount of allowable expenditure (‘core expenditure’) so as to either reduce taxable profits or, if the enhancement creates or increases a tax loss, the enhanced loss can be surrendered for a payable tax credit.