Creative industry tax reliefs are a set of four tax reliefs in tune with need of TV and digital media companies.
The reliefs let companies making films, TV programmes and video games claim extra corporation tax reliefs, providing they meet certain qualifying rules.
What are the four creative industry tax reliefs?
- Film Tax Relief – introduced in April 2007
- Animation Tax Relief – Introduced in April 2013
- High-end Television Tax Relief – Introduced in April 2013
- Video Games Development – Awaiting a release date
How do companies apply for the reliefs?
To apply, a company must be:
- Liable to pay Corporation Tax in the UK
- Involved in producing films, TV programmes and video games
Passing the cultural test
Companies seeking the tax reliefs must either pass the cultural test or certify the production is British via an international co-production treaty.
The British Film Institute manages certification, issuing an interim certificate while a project is in production and a final certificate when production ends.
Film Tax Relief
Film Tax Relief (FTR) is available when:
- A film passes the cultural test
- Theatrical release is intended for the film
- No less than 25% of total production costs relate to activities in the UK
- The first day of principal photography was no earlier than January 1, 2007
Animation Tax Relief
Animation Tax Relief (ATR) is available if:
- The programme passes the cultural test – but relating to the European Economic Area, not just the UK
- The programme is for broadcast
- No less than 51% of the total core expenditure is on animation
- No less than 25% of production costs relate to activities in the UK
Animations commissioned together are treated as one.
Animation Tax Relief is unavailable if the programme:
- Is an advert
- Is for a news, current affairs or discussion programme
- Is for a quiz, game show, panel show, variety show, or similar programme
- Includes a competition
- Is a live broadcast
- Is for training courses
High-end Television Tax Relief
High-end Television Tax Relief (HTR) is available if:
- The programme passes the cultural test – but relating to the European Economic Area, not just the UK
- The programme is for broadcast
- The programme is drama, comedy or a documentary
- No less than 25% of production costs relate to activities in the UK
- The average qualifying production costs are £1 million per hour or more
- The programme slot is longer than 30 minutes
Programmes commissioned together are treated as one programme.
High-end Television Tax Relief is unavailable if the programme:
- Is an advert
- Is for a news, current affairs or discussion programme
- Is for a quiz, game show, panel show, variety show, or similar programme
- Includes a competition
- Is a live broadcast
- Is for training courses
Video Games Development Relief
Video Games Development Relief is awaiting approval and the details are not yet available.