Creative Industry Tax Relief: Video Game Development, Theatre and Orchestras

Creative industry tax reliefs are an evolving set of tax reliefs that exist to encourage UK creative industry growth.

 

CREATIVE INDUSTRY TAX RELIEFS CAN BE BROKEN DOWN INTO:

·      Film tax relief

·      Animation tax relief

·      High-end TV and children’s programmes

·      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 are able to additional tax deductions of up to 100% of enhanceable expenditure or; if a loss is surrendered: 25% of the loss to the amount of enhanceable expenditure.

The 2017 spring budget announced that state aid approval would extend high-end TX animation and video games tax reliefs after 2018.

 

Video Games Tax Relief

Who is eligible?

 

·       Video games that are certified as culturally British

·       Video games that are intended for supply

·       Video Games with at least 25% of production costs are incurred in the EEA

 

There is no relief for a programme that is:

 

No relief for games that are produced for:

·       Advertising

·       Promotion

·       Gambling

 

Enhanceable expenditure

 

The lesser of

·       EEA qualifying expenditure 

80% of total qualifying expenditure

 

 

Maximum claimable

 

Qualifying companies can claim either an additional tax deduction if 100% of enhanceable expenditure or; if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure

 

 

Theatre Tax Relief

Who is eligible?

 

·       Programmes made in the EEA

·       Programmes intended for broadcast

·       Programmes with at least 51% of the total core expenditure is on animation

·       Programmes with at least 10% of the total production costs relate to activities in the UK (Prior to 1 April 2015 this figure was 25%)

 

 There is no relief for a programme that is:

 

No relief for a programmes that:

·       Are an advertisement or promotional programme

·       Are a news, current affairs or discussion programme

·       Area quiz or game show, panel show, variety show etc.

·       Include an element of competition or contest

·       Broadcasts live events

 

Maximum claimable

 

Qualifying companies can claim either:

·       An additional tax deduction of 100% of enhanceable expenditure 

·       If a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure

 

Orchestras tax relief

 

Who is eligible?

 

Companies that qualify for orchestra tax relief must be engaged in the production of live orchestral performances.

 

 There is no relief for a programme that is:

 

·       Orchestral performances with a competitive element

·       Orchestral performances where the sole or main purpose is for advertising

·       Orchestral performances intended solely or mainly for recording or broadcast

 

Maximum claimable

 

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