LONDON — British musicians have already been hit exhausting by Brexit, with excursions to the continent slowed down in work allow purposes and customs paperwork. Now issues are about to worsen.

A brand new Brexit tax hike set to hit U.Ok. orchestras later this yr may make journeys to Europe “unviable” and undermine their actions again in Britain, the commerce physique representing the musical ensembles is warning.

From April 1 this yr, U.Ok. orchestras crossing the Channel to play will now not be capable to declare tax reduction on performances within the European Financial Space, as they’re at the moment allowed to do.

The U.Ok. authorities is making the change to deliver Britain into line with World Commerce Group (WTO) guidelines – required due to the U.Ok.’s exit from the EU single market.

The tax hike is simply the newest in a string of blows to British musicians following the U.Ok.’s departure from the EU.

New guidelines about taking devices throughout borders, work visas, and “cabotage” necessities on transporting tools by lorry have led to warnings that smaller British artists are more and more discovering it unimaginable to tour.

Now Britain’s orchestras say their incomes are in danger due to the newest change, with knock-on results on funding and performances at dwelling.

“The proposals to take away EEA prices from qualifying expenditure is one other post-Brexit barrier to touring within the EEA, which dangers making European touring financially unviable,” Hanna Madalska-Gayer, head of coverage on the Affiliation of British Orchestras, instructed POLITICO.

“International-earned revenue additionally permits U.Ok. orchestras to spend money on and develop work on and off the live performance platform right here within the U.Ok., so we’ll really feel the affect domestically as nicely.”

WTO fears

Orchestras within the Affiliation of British Orchestras made 150 visits to 22 totally different EEA nations in 2019, with worldwide touring accounting for over 20 p.c of orchestras’ earned revenue — 60 p.c of which comes from EU excursions alone.

The 10 p.c tax reduction can at the moment be claimed on performances in EEA nations — the EU, plus Norway, Iceland, and Lichtenstein. To qualify, a gaggle have to be an ensemble with a minimal of 12 instrumentalists performing stay with out “digital amplification.”

The price of the coverage is comparatively small. Ministers say that since 2016 it has value the U.Ok. Treasury £75 million throughout all claims, together with home performances within the U.Ok.

However underneath WTO guidelines, nations can not give particular remedy to commerce with one other state with out providing it to all WTO members — the so known as “most-favored nation” precept. The Treasury believes this implies the tax reduction can now solely apply within the U.Ok.

Particular remedy could be given to nations solely as a part of a proper free commerce settlement — however the reduction shouldn’t be included within the Brexit Commerce and Cooperation Settlement signed between the EU and the U.Ok.

A spokesperson on the Treasury stated the change would deliver orchestral tax reduction into line with comparable reliefs for movie, TV and video video games.

The U.Ok. finance division argues that the change is each essential to adjust to WTO guidelines, but in addition that it’s applicable to “refocus” orchestra tax reduction on the U.Ok. following Brexit.

A authorities spokesperson stated: “We’re supporting the U.Ok.’s sensible artists to adapt to the brand new preparations and we proceed to work throughout the EU to assist our musicians to tour.”