Theatre Tax Relief (TTR) has become a cornerstone of the UK's creative economy, helping theatre companies bridge the gap between artistic ambition and financial reality.

For theatre production companies (TPCs), understanding the nuances of this relief can mean the difference between a production that breaks even and one that generates significant returns for future projects.

Here's what might surprise you: your production's touring status can mean the difference between a 45% and 50% cash credit rate. With changes in April 2025, these rates have shifted even further. If you're planning a production, understanding whether you qualify as touring or non-touring could unlock thousands of pounds in additional relief.

What is Theatre Tax Relief?

Theatre Tax Relief is a UK government incentive designed to support the theatre industry by reducing the financial burden on qualifying productions. Available to theatre production companies that produce qualifying theatrical works, TTR operates through two key mechanisms:

• Enhanced Deduction: TPCs can deduct up to 80% of qualifying production costs from their taxable profits, significantly reducing their corporation tax liability.
• Payable Credit: When a TPC makes a loss on their theatrical production, they can surrender this loss to HMRC in exchange for a cash payment – and this is where the touring vs. non-touring distinction becomes crucial.

Under current HMRC rules, touring theatre productions receive preferential treatment with higher cash credit rates, reflecting the additional costs and logistical challenges of performing across multiple venues.

Touring vs. Non-Touring Theatre Tax Relief Rates in 2025

The financial advantage of qualifying as a touring production is clear when you look at the current cash credit rates:

While both rates are decreasing for expenditure incurred from 1 April 2025, touring productions maintain their 5-percentage-point advantage – a difference that can amount to substantial sums for larger productions.

Example Calculation: The Financial Impact

Let's say your theatre production company has qualifying production expenditure of £200,000 and makes a surrenderable loss of £150,000:

Touring Production:

• Until March 2025 (50%): £150,000 × 50% = £75,000 cash credit
• From April 2025 (45%): £150,000 × 45% = £67,500 cash credit

Non-Touring Production:

• Until March 2025 (45%): £150,000 × 45% = £67,500 cash credit
• From April 2025 (40%): £150,000 × 40% = £60,000 cash credit

The touring advantage currently delivers an extra £7,500 – money that can be reinvested into future productions, better production values, or simply improved cash flow.

For more information on the calculation method, check out our blog on calculating creative tax reliefs.

How to Qualify as a Touring Production

HMRC recognises that touring productions face additional costs – from transportation and accommodation to the complexity of coordinating performances across multiple venues. The higher relief rate for touring productions reflects these realities, but qualification requires meeting specific criteria from the outset.

For your production to qualify as touring, at least one of the following must apply:

1. Six or More Separate Premises: At the start of production, your TPC must intend to have performances at 6 or more separate premises.
2. Fourteen Performances Across Multiple Venues: You must plan at least 14 performances, and these must be scheduled across at least 2 separate premises.

The key word here is "intend" – you need to demonstrate clear intention from the production's inception, not just hope that touring opportunities might arise later. This means your touring plans should be documented in business plans, venue agreements, or correspondence that shows genuine intent to tour.

Non-Touring Theatre Tax Relief – Still Worth Claiming

While touring productions enjoy preferential rates, non-touring theatre tax relief remains a valuable benefit for resident productions. West End runs, regional theatre seasons, and venue-specific productions can all benefit from the relief, even at the lower rate.

A successful West End production that runs for six months at a single theatre won't qualify for touring rates, but the TPC can still claim significant relief on their qualifying expenditure. For many productions, particularly those with lower production costs or guaranteed revenue streams, the administrative simplicity of a single venue can offset the lower relief rate.

Documentation You'll Need to Claim Theatre Tax Relief

Successful TTR claims depend on robust documentation, and the requirements differ slightly between touring and non-touring productions.

For all productions:

• Detailed production budgets and expenditure records
• Corporation tax returns and company accounts
• Evidence of qualifying theatrical activities

Additional documentation for touring claims:

• Tour Itineraries: Detailed schedules showing planned performances across multiple venues
• Venue Hire Contracts: Agreements with different premises demonstrating genuine touring intent
• Ticket Sales Records: Evidence of performances at multiple locations
• Initial Planning Documents: Business plans or correspondence showing touring intentions from the production's start

Basic performance information is required as part of your Additional Information Form, which is submitted with your claim.

The importance of keeping proof from the start cannot be overstated. HMRC will scrutinise touring claims to ensure they meet the qualification criteria, and retroactively gathering evidence can be challenging and potentially unsuccessful.

Make Sure You're Claiming Your Full Entitlement

The choice between touring and non-touring isn't just artistic – it's a significant financial decision that can impact your production's returns and future sustainability. While touring productions enjoy higher relief rates, they also face additional costs and complexities.

The key takeaways for theatre production companies are:

• Plan Early: Touring qualification must be intended from the start, not developed retrospectively
• Document Everything: Robust records are essential, particularly for touring claims
• Consider the Full Picture: Higher relief rates must be weighed against additional touring costs

Whether you're planning an ambitious multi-venue tour or a focused single-venue production, Theatre Tax Relief can provide substantial support for your project. The crucial factor is ensuring you understand your entitlements and claim at the correct rate.

Every production is unique, and the qualification criteria can be complex. Get in touch with our specialist team before making your claim – we'll help you understand whether you qualify for touring rates and ensure you're claiming your full entitlement from day one.