Tax relief for choirs

What are creative tax reliefs and why are choirs not eligible?

Over the last 20 years governments have introduced various creative tax reliefs to enable organisations to claim back some of their production costs. Two of these tax reliefs – Orchestra Tax Relief (OTR) and Theatre Tax Relief (TTR) – are already being used by Making Music members to claim back an average 26% of their concert and event costs, amounting to £620k in 2024 alone. The new UK government recognised the importance of these tax reliefs and their impact by committing in the Autumn 2024 budget to maintain the permanent higher rate of 45% previously announced by the Conservative government.

These tax reliefs have made a significant contribution to groups’ budgets (average increase of 50% in concert budgets between first and most recent claims by Making Music instrumental groups) and facilitated growth and activity. Music groups produce more and larger work and events, engage more professionals (average 55% more spend on professional musicians) and programme and commission more new work (some increasing their music budget by a factor of four or even six) , enabling more participants and audiences to experience the joy of live music performance.  

To be eligible for OTR, a performance must include 12 or more instruments that are not directly amplified. That means all kinds of instrumental groups can claim, not just orchestras: brass and concert bands, string players, handbell ringers, jazz bands, flute choirs...  

But 'voice' is not an eligible instrument, so concerts that are organised by choirs or where the performance is mostly vocal do not qualify.  

What are the benefits for choirs, their audiences and all of us? 

As a review of OTR in preparation for the 2024 budget, the Association of British Orchestras and others submitted case studies and data to HMRC and the Treasury. This proved that OTR support translates into more ambitious and larger scale programming, more professionals engaged and commissioned, increased venue hires and growth in night-time economy. There is no doubt that this effect would be extended if choirs were included.  

All this facilitates the sustainability of the music sector and a greater reach of audiences and new participants, with all the ensuing secondary benefits to individual wellbeing, educational attainment, pride of place, community cohesion, regeneration, and social inclusion. 

The professional and non-professional choir sector in this country is considerable. We estimate the number of professional choirs (i.e. where all singers are professional) in the UK to be around 30 (estimated as there is no network organisation representing them). There is a larger number of choirs made up of non-professional singers, as the UK has a strong tradition of choral singing. Data suggests there are at least 9,000 across the UK.  

Currently a lack of inward investment is holding back the economic growth of the choir sector and the significant contribution choirs make to professionals’ portfolio careers; they engage around 30,000 choir leaders, composers and singers every year. 

But is it complicated to make a claim? 

Claiming tax relief does involve a bit of work and a group is likely to need to make some changes to how it operates. But Making Music has developed a service to process creative tax relief claims for members and has extensive experience in submitting compliant claims to HMRC. Currently, 97 members are registered with us to make claims through this service. 

How should I approach my MP? 

We’re suggesting you approach your MPs, introducing your group, explaining how extending OTR to choirs would impact your choir, your community, their constituency, and asking them to write to the Chancellor to support this proposal. Contact your MP through this website or look for their website - most have one and it will list an email address and a postal address.

We don’t provide template letters as we know that MPs take more notice of constituents who present their own views, and how the issue directly affects them and their community. When writing or emailing we suggest you include the following: 

1. Put the subject right at the top in bold: eg – ‘I am writing to you to ask that in the November budget you extend Orchestra Tax Relief to choirs.’

2. The first paragraph should always be introducing yourself and/or your choir. Whether or not the choir itself rehearses or performs in the constituency is not relevant here, only that you, as her constituent, sing in/volunteer with/work for this choir.

Describe what you do in the choir, how you/your family/friends/community benefit from its activities. Describe the choir activities, how many people benefit – eg number of participants, number of volunteers, number of concerts and audiences etc.. How you contribute to local economy if you do – venue booking, sheet music, hiring staging, audiences spending in local area etc.. Or just talk about the benefits to yourself – your health, your mental wellbeing, how you have made friends and feel connected in your community, learnt about new music, built your confidence, or whatever might be applicable to you!

3. Then talk about your ask – that your choir be enabled to claim a creative tax relief.
   • You can quote the benefits that amateur orchestras and bands, having been able to claim Orchestra Tax Relief since 2018, have been able to reap: 50% increased production budgets on average, with increased spending going to music professionals (who pay tax) and music businesses, e.g. music publishers for hire of more expensive music. 
   • Orchestras can claim tax relief on the cost of booking your choir for their performance, as can film, theatre and television companies, but choirs themselves cannot claim on their own behalf for their core activity of promoting their own concerts – this is an anomaly that extending Orchestra Tax Relief to choirs would put an end to.
   • On average, Orchestra Tax Relief claims are worth 26% of their production budgets to amateur orchestras. So you could reference what ambitions you have with the choir which such tax relief could help you realise – for example more ambitious programming, more soloists, more commissions of new music, greater access for certain demographic groups, etc.
4. Invite your MP to any events, whether or not before the budget on 26 November, especially if you have Christmas plans.
5. If your choir is a member of Making Music, please do say that. But whether or not your choir is a member, please suggest that Making Music is the right organisation for Rachel Reeves’ officials to talk to in terms of practicalities.
   • How to contact us: info@makingmusic.org.uk with subject line: Attention of CEO Barbara Eifler

6. About Making Music: We represent 4,000 music groups across the UK comprising around 240,000 hobby musicians, of which 2,100+ choirs. Making Music represents an estimated 29% of all leisure time music groups (2008 DCMS/ACE report Our Creative Talent for data reference) which therefore total at least 13,800 and include around 750,000 individuals. This is likely to be an underestimate of the total size of the sector.

Read more about our Orchestra Tax Relief service.