This is an 'At a glance' freeview guide to tax reliefs for Creative Industries.

Creative Industries Tax Reliefs, are a growing suite of special company tax reliefs that are similar in form to Research & Development (R&D) tax relief.

They comprise:

  • Film tax relief.
  • Animation tax relief.
  • High-end TV and children's programming.
  • Video Games Production tax relief.
  • Theatre tax relief.
  • Orchestra tax relief.

These reliefs are available for:

  • Film production companies producing films.
  • Television production companies producing relevant animation or high-end television programmes.
  • Video games development companies.
  • Theatre production companies.
  • Orchestra production companies.

Qualifying companies can claim either:

  • An additional tax deduction (the enhancement) of up to 100% of enhanceable expenditure or,
  • If a loss is surrendered, 25% of the loss up to the amount of enhanceable expenditure

Reliefs at a glance 

Tax relief Film Animation High-end TV
When from: 1 Jan 2007  1 April 2013

1 April 2013

Extended to Children's TV 1 April 2015 

Conditions  
  • 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
Exclusions  

 

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
 
Enhanceable Expenditure

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
 Max claims  

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
Links

 

 

Tax relief Video Games Development Theatre Orchestras
When from: 1 April 2014 1 September 2014 1 April 2016
Conditions  
  • 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

Legislation included in 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

Exclusions

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

 
Enhanceable expenditure

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
 Max claims  

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
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
Links

 

Further information

HMRC online form to assist claims.

HMRC guidance: Corporation Tax: Creative industries tax reliefs 

HMRC guidance:Support your claim for creative industry tax reliefs


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