Advice from a Creative Industry Accountant: Creative Industry Tax Relief

As an expert accountancy firm that specialises the creative arts, we receive questions every day surrounding tax reliefs. Creative industry tax reliefs can be broken down into 7 Corporation Tax reliefs that allow a company to claim a larger deduction, or even claim a payable tax credit when calculating their tax credits.


The reliefs work to increase the amount of allowable expenditure.


Who is entitled to creative industry tax relief?


You can claim creative industry tax relief if your company is:

·      Liable to Corporation Tax

·      Directly involved in the production and development ofL

o   Qualifying films

o   High0end and children’s television programmes

o   Animation programmes

o   Video Games

o   Theatrical productions and orchestral concerts


Films and television production companies producing relevant animation and high-end television programmes are subject to special tax rules. Contact us for further information on the ‘special tax rules’.


In order to qualify for creative industry tax relief all films, television programmes, animations and/or video games must pas the ‘cultural test’ or qualify through an internationally agrees co-production treaty. This must certify that the production is a British Film, British Programme or British video game. In all cases, formal certification is required to qualify.


Types of Creative Industry Tax Relief ( All State Aid):

·      Film Tax Relief (FTR)

·      Animation Tax Relief (ATR)

·      High-end Television Tax Relief (HTR)

·      Children’s Television Tax Relief (CTR)

·      Video Games Tax Relief (VGTR)

·      Theatre Tax Relief (TTR)

·      Orchestra Tax Relief (OTR)


For all of the reliefs listed (except VGTR) when your company receives more than £500,000 a year in state aid it will be published on the European Commission Website.


For more information on creative industry tax relief contact us now and follow our blog