Creative industry tax reliefs must take centre-stage for Yorkshire’s arts and cultural sectors

Chartered accounting and business advisory firm, Saffery, has experienced an increase in enquiries from theatres, museums and arts organisations, from across Leeds and beyond, seeking specialist advice on cultural tax relief, as the city’s creative sector continues to grow.

Leeds is increasingly recognised as one of the UK’s leading creative centres. Home to internationally renowned opera and ballet companies, a thriving theatre scene, major museums and galleries, as well as Channel 4’s headquarters, the city has established itself as a cultural powerhouse.

As a result, Saffery’s corporate tax team have seen a sharp rise in requests from organisations looking to understand and take advantage of the range of tax reliefs available to the creative and cultural sectors.

Fergus Watson-West, who is a senior manager in the corporate tax team in Saffery’s Leeds office, said “As Leeds’ cultural profile has grown, so too has awareness that valuable tax reliefs exist that many of the region’s theatres, museums, production companies and arts charities can take advantage of.

“With rising production costs and ongoing funding pressures, organisations are increasingly turning their attention to creative industry tax reliefs as a vital source of financial support. The reliefs are designed to support cultural production and encourage investment in the arts, and they can cover theatrical productions, orchestral concerts, museum and gallery exhibitions as well as film, television and animation productions.

“In simple terms, these reliefs allow eligible organisations, including charities and not-for-profits, to claim back a proportion of their qualifying production costs from HMRC as a tax credit.”

Fergus continued: “For many organisations, this can mean a significant cash injection which can be reinvested into future projects, community outreach or new creative work.

“However, whilst the principles are straightforward, the rules around eligibility and qualifying expenditure can be complex, so organisations should enlist the support of a specialist to help assess eligibility and navigate the nuances of the schemes.”

As Leeds’ reputation as a creative hub continues to grow and strengthen, Fergus believes proactive financial planning is essential to sustain growth. He added: “The creative sector is one of Leeds’ great success stories. From world-class opera and ballet to innovative independent theatre and major broadcasters, the ecosystem in the city is remarkable. Making full use of the support available through cultural tax reliefs is key to ensuring this growth is sustainable.”

Saffery relocated its Yorkshire office to Wellington Place, in Leeds city centre, in 2024. The office now employs a team of over 70 people, including six experienced partners leading on every client relationship.

Established services that Saffery offers from its Leeds office include audit and accounting, corporate tax, personal tax, VAT and business advisory. Saffery also has dedicated sector experts spanning owner-managed businesses and entrepreneurs, private wealth and family trusts, agricultural and rural businesses, and charities and not-for-profit organisations.