Theatre productions and regional touring companies are in line for at least a fifth off their tax bills under a new tax break confirmed by the Chancellor.

George Osborne first announced a consultation on “limited corporation tax relief for commercial theatre productions and a targeted relief for theatres investing in new writings or touring productions to regional theatres” last December at the time of his Autumn Statement.

From 1 September, Mr Osborne has proposed making relief available at 25 per cent on any initial investment and 20 per cent thereafter, with the full details set to be published after the Budget.

The measures will cover opera and dance as well as plays and musicals.

The Treasury said it wanted to recognise the “unique value that the theatre sector brings to the UK economy”.

Film, high-end TV and animation are among the other creative industries that have already benefited from what Mr Osborne described as “successful” tax concessions for culturally-British work in recent years.

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