According to the Musicians' Union (MU), the Live Music Bill is due to receive Royal Assent on Thursday which will make it the Live Music Act.
The Act states that an exemption to the Licensing Act should take place when 'the live music entertainment takes place in the presence of an audience of no more than 200 persons'.
John Smith, MU General Secretary, said:
'It’s great news that the Live Music Bill has now passed all of its parliamentary stages and we would like to thank all of the MPs and Lords who have been involved in this process.
'The MU has been lobbying for changes to the Licensing Act for many years now and this exemption is fantastic news for musicians and will be a real boost for live music. We look forward to the implementation of the Act later this year and we will be working with the government to ensure that the Act has maximum impact.'