Nichola Ross Martin's Tax Consultancy

1 April 2013

Extended to Children's TV 1 April 2015 

• British film
• Intended for theatrical release
• At least 10% of the total production costs relate to activities in the UK
• Prior to 1 April 2014 this figure was 25%

• A programme made in the EEA
• Intended for broadcast
• At least 51% of the total core expenditure is on animation
• At least 10% of the total production costs relate to activities in the UK
• Prior to 1 April 2015 this figure was 25%
• Animations commissioned together are treated as one programme

• A programme made in the EEA 
• Intended for broadcast
• The programme is a drama, comedy or documentary
• At least 10% of the total production costs relate to activities in the UK
• Prior to 1 April 2015 this figure was 25%
• The average qualifying production costs per hour of production length is not less than £1million per hour (not applicable for Children's TV)
• The slot length in relation to the programme must be greater than 30 minutes (not applicable for Children's TV)
• Programmes commissioned together are treated as one programme

No relief for a programme that:

• is an advertisement or promotional programme
• is a news, current affairs or discussion programme
• is a quiz or game show, panel show, variety show, or similar programme
• consists of or includes an element of competition or contest
• broadcasts live events, including theatrical and artistic performance
• is produced for training purposes

No relief for a programme that:

• is an advertisement or promotional programme
• is a news, current affairs or discussion programme
• is a quiz or game show, panel show, variety show, or similar programme (but see exception for children's programme)
• consists of or includes an element of competition or contest
• broadcasts live events, including theatrical and artistic performance
• is produced for training purposes

The lesser of

• UK qualifying expenditure 
• 80% of total qualifying expenditure

The lesser of

• UK qualifying expenditure
• 80% of total qualifying expenditure

The lesser of

• UK qualifying expenditure
• 80% of total qualifying expenditure

Prior to 1 April 2015:

Limited-budget films relief

Limited budget means £20 million or less

Qualifying companies can claim either:

• an additional tax deduction (the enhancement) of 100% of  enhanceable expenditure
• if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure

Other films are entitled to either:

• a tax deduction of 80% of enhanceable expenditure 
• if a loss is surrendered: 20% of the loss up to the amount of the enhanceable expenditure

From 1 April 2015:

The distinction between limited budget and other films is removed.

Qualifying companies can claim either:

• an additional tax deduction (the enhancement) of 100% of  enhanceable expenditure
• if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure

Qualifying companies can claim either:

• an additional tax deduction (the enhancement) of 100% of  enhanceable expenditure 
• if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure

Qualifying companies can claim either:

• an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
• if a loss is surrendered: 25% of the loss up to the amount  of enhanceable expenditure

• Film Tax Relief

• Animation Tax Relief

• Television Tax Relief, including Children's programming

• Video games that are certified as culturally British
• Intended for supply
• At least 25% of production costs are incurred in the EEA

• At least 25% of production costs are incurred in the EEA
• A theatrical production includes a ballet, play, opera, musical, circus or other dramatic piece 
• Performances must be live
• A production may be a touring production or static

New legislation included in the Finance Act 2016

• Qualifying companies must be engaged in the production of live orchestral performances

• Tax relief will be in respect of the creative and production costs incurred in producing live orchestral performances

 No relief for games that are produced for:

• advertising
• promotion
• gambling

No relief if:

• there is an advertising or promotion purpose
• the performance consists of or includes an element of competition or contest
• a wild animal is to be used in any performance
• the production is of a sexual nature
• making a relevant recording is one of the main objects of the production

Proposed exclusions:

• entertainment with a competitive element

• performances where the sole or main purpose is for advertising

• performances intended solely or mainly for recording or broadcast

The lesser of

• EEA qualifying expenditure 
• 80% of total qualifying expenditure

The lesser of

• EEA qualifying expenditure 
• 80% of total qualifying expenditure

The lesser of

• EEA qualifying expenditure 
• 80% of total qualifying expenditure

Qualifying companies can claim either:

• an additional tax deduction (the enhancement) of 100% of  enhanceable expenditure 
• if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure

Qualifying companies can claim either:

• an additional tax deduction (the enhancement) of 100% of  enhanceable expenditure 
• if a loss is surrendered: touring performances 25% / static performances 20% of the loss up to the amount of enhanceable expenditure

• an additional tax deduction (the enhancement) of 100% of  enhanceable expenditure 
• if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure

• Video Games Development Tax Relief

• Theatre Tax Relief

• Orchestra Tax Relief