What are Creative Industries Tax Reliefs? Which Creative Industries Tax Relief are you eligible for? When should relief be claimed under Audio-Visual Expenditure Credit (AVEC) and Video Games Expenditure Credit (VGEC)? 

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This is a freeview 'At a glance' guide for Creative Industries Tax Reliefs. 

Companies engaged in producing films, animation, high-end TV, children's TV, video games, theatre performances, orchestral performances and museum & gallery exhibitions can claim a special Corporation Tax relief in respect of their production costs. 

Summary of the reliefs available: 

Apply to the
production of:

Relief (Film, Television, Video Games, Theatre, Orchestra, or Museum & Gallery Tax Relief)

Expenditure Credits (Audio-Visual Expenditure Credit (AVEC) or Video Games Expenditure Credit (VGEC))

Film Film Tax Relief (FTR)

34% AVEC

Animation Animation Tax Relief (ATR)                                                      39% AVEC
High-end TV

High-End TV Tax Relief (HETR)

34% AVEC
Children's TV

Children’s TV Tax Relief (CTR)

39% AVEC
Video Games

Video Games Tax Relief (VGTR)

34% VGEC
Theatre Theatre Tax Relief (TTR)

 

TTR, OTR and MGETR are unaffected by the reform to expenditure credits. 

Orchestral performance

Orchestra Tax Relief (OTR)

Museum & Gallery Exhibitions                                     

Museum & Gallery Exhibitions Tax Relief (MGETR)

Reform to expenditure credits 

  • For qualifying expenditure incurred on or after 1 January 2024, companies claiming under FTR, ATR, CTR, HETR, and VGTR can: 
    • Continue to claim FTR, HETV, CTR, ATR or VGTR. 
    • Or opt-in to claim Expenditure Credits(AVEC or VGEC).
  • No election for AVEC or VGEC can be made for an accounting period ending before 1 January 2024.
  • If a company makes an election for AVEC or VGEC for an accounting period beginning before 1 January 2024: 
    • FTR, HETV, CTR, ATR or VGTR will apply until 1 January 2024, and  
    • AVEC or VGEC will apply to the portion of the accounting period falling after 1 January 2024.
  • New productions must claim under AVEC or VGEC from 1 April 2025.
  • All productions must claim under AVEC or VGEC from 1 April 2027. 
  • FTR, ATR, HETR, CTR and VGTR will cease on 31 March 2027.

FTR, ATR, CTR, HETR, VGTR, TTR, OTR and MGETR

For qualifying expenditure incurred, qualifying companies can:

  • Claim an additional tax deduction (an enhancement) of up to 100% of enhanceable expenditure.
  • Surrender a loss for a payable tax credit.
Relief Payable credit 
FTR, ATR, HETR, CTR and VGTR 25%
TTR, OTR and MGETR 45%/50%

*The rates of relief for TTR, OTR and MGETR remain at 50% for touring and all orchestra productions or 45% for non-touring productions until 31 March 2025.

  • The surrenderable loss is the lower of:
    • The company's available loss.
    • The available qualifying expenditure (enhanceable expenditure).
  • Enhanceable expenditure for FTR, ATR, HETR and CTR is, broadly, the lesser of:
    • Core expenditure on goods or services that are used or consumed in the United Kingdom.
    • 80% of total core expenditure. 
  • Enhanceable expenditure for VGTR, TTR, OTR and MGETR is broadly, the lesser of:
    • Expenditure on goods or services that are provided from within the United Kingdom or the European Economic Area.
    • 80% of total core expenditure.

Each FTR, ATR, HETR, CTR, VGTR, TTR, OTR and MGETR has its specific conditions. The reliefs are aimed at creative productions based in the UK.

Expenditure Credits 

Remaining Creative Industries Tax Reliefs

  • TTR, OTR and MGETR are unaffected by the reform to expenditure credits. 
  • The rates of relief remain at 50% for touring and all orchestra productions and 45% for non-touring productions until 31 March 2025.

Administrative changes 

Useful guides on this topic

Creative Industries: Additional Information Form (AIF)
What are the additional information requirements? When should you complete the Additional Information Form (AIF)? What information is required? 

Creative Industries: Audio-Visual Expenditure Credit (AVEC) & Video Games Expenditure Credit (VGEC)
Audio-Visual Expenditure Credit (AVEC) will replace Film Tax Relief (FTR), High-End TV Tax Relief (HETR), Animation Tax Relief (ATR), and Children’s TV Tax Relief (CTR). Video Games Expenditure Credit (VGEC) will replace Video Games Relief (VGTR).

Creative Industries: AVEC worked example
How to calculate the Audio-Visual Expenditure Credit (AVEC) and Video Games Expenditure Credit (VGEC)? 

Creative Industries: AVEC worked example (with losses)
How to calculate the Audio-Visual Expenditure Credit (AVEC) and Video Games Expenditure Credit (VGEC)?  How to determine the credit repayable to the company if it incurs losses?

Creative Industries: Film Tax Relief and Television Tax Relief
Film Tax Relief (FTR), High-End TV Tax Relief (HETR), Animation Tax Relief (ATR) and, Children’s TV Tax Relief (CTR) are part of the UK's suite of creative industry tax reliefs. 

Creative Industries: Video Games Tax Reliefs (VGTR)
What is Video Games Tax Relief (VGTR)? Who can claim VGTR? When will VGTR cease? 

Creative Industries: Theatre Tax Relief (TTR)
What is Theatre Tax Relief (TTR)? Who can claim it? What are the conditions?

Creative Industries: Orchestra Tax Relief (OTR)
What is Orchestra Tax relief? What are the qualifying conditions? What is the rate of relief?

Creative Industries: Museum & Gallery Exhibitions Tax Relief (MGETR)
What is Museum & Gallery Exhibitions Tax Relief? When does it apply?

R&D Zone
How to calculate RDEC relief with losses and interactions with SME reliefs: worked examples and templates 


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