We were very encouraged to see the Chancellor's announcement of a new tax relief for museums and galleries in his first – and last – Spring Budget. Effective from 1 April 2017, this offers tax relief of 25% and 20% for touring and non-touring exhibitions respectively. This is a welcome extension of the creative sector tax reliefs for new exhibitions and we will post a further update once we have studied the full details and rules around this.
We also welcome the Chancellor’s decision to postpone aspects of the 'Making Tax Digital’ programme by a year for those earning below the VAT threshold. Known colloquially as ‘Making Tax Difficult’, we have worked with Equity, a trade union representing artists, on responses during the consultation process. There is genuine concern that at the threshold level of £10,000 many members of entertainment professions earning low levels of income will find it hard to cope. These are the self-employed who are unable to afford professional advice and are worried about the compliance. The deferral of 12 months is therefore welcome, giving time to see the system in operation and advise those lower earning performers on how best to meet the requirements.
For further information please contact Philip Clark
, or click here to read our full Budget summary