The Chancellor, in his Budget Statement on 19 March 2014, proposed changes to tax reliefs for television programmes and video games that were introduced by the Finance Act 2013 (as reported in a previous TMT e-briefing available here). There are also new tax reliefs for theatre productions and major sporting events.
Certain amendments are proposed to clarify the application of reliefs introduced by the Finance Act 2013 for television programmes and video games.
There will be a new reliefs for theatre: with effect from 1 September 2014, theatre productions, which includes theatre, ballet, dance and opera, musicals and other live performance, will qualify for corporation tax relief of up to 25%.
The government will also have the power to make future income tax and corporation tax provision for major sporting events using secondary legislation.
The changes to legislation regarding the treatment of television programmes and video games relying on the respective reliefs are relatively minor. With respect to theatre, theatre production houses should seek specialist advice regarding appropriate corporate structures. It will be interesting to see how the secondary powers with respect to sporting events are utilised in future.