Advice from a specialist accountant in the creative industry: Children’s television tax relief

As a specialists in accounting for the creative industry Children’s Television Tax Relief is a topic we have visited and our clients have benefited from many times.

In 2013 the Finance Act introduces a new regime for the taxation of Television Production Companies and a new relief for the television industry. This legislation provided specific rules for the relief given on television programmes including high-end television productions and animations.

Under the act each programme produced is regarded as a separate trade with a start and end date separate to that of the company. It also defines what income and expenditure is eligible for the tax relief and restricts the use of losses associated with that trade.

Television tax relief applies to British programmes that are intended for broadcast and at least 25% of core expenditure is incurred on goods or services used or consumed in the UK. If the programmes work had not been finished by 1st April 2015 then the core expenditure percentage is lowered to 10%.

Production expenditure can include expenses that were incurred at development, pre-production, principle photography and post-production stages.


When is a programme deemed as ‘completed’?

A programme is identified by the HMRC as completed when it is first in a form in which it can reasonably be regarded as ready for broadcast to the general public.


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