Film, Animation and TV tax relief broken down

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.

 

Film, Animation and TV Tax Relief Broken down


 

Film, Animation and TV tax reliefs are available in the form of:

·       Enhanced corporation tax relief of up to 100% of the enhanceable expenditure incurred.

·       A repayable tax credit for losses surrendered

Enhanced expenditure is capped at the lesser of qualifying UK expenditure or 80% of the total qualifying expenditure for animation and TV tax relief. However, it is important to be aware of the variations across the reliefs.

 

Cultural Test:

All TV programmes, films and animations must pass a cultural testto be eligible for the relief, or qualify through an internationally agreed co-production treaty certifying that the production is a British Film, British programme or British Animation.

Certification and qualification administered by the British Film institute (BFI). The BFI issue interim certificates for incomplete work or a final certificate where the production is finished,

 

Film tax relief

Film tax relief is available to films that:

·       Pass the cultural test

·       Are intended for theatrical release

·       Have at least 10% of core expenditure that related to goods or services used or consumed in the UK

·       Where the principle photography took place on or after 1st January 2017

Expenditure qualifying for relief: core expenditure

Core expenditure includes expenditure incurred on:

·       Pre production

·       Principle photography

·       Post Production

The is no relief for an expenses that have also qualified for R&D relief

 

Animation Tax Relief

Animation tax relief is available to programmes that:

·       Pass the cultural test

·       Are intended for broadcast

·       Have at least 51% of their total core expenditure being on animation.

·       Have at least 10% of the total production costs relating to goods and services used or consumer in the UK

 

High-end Television Tax Relief

High-end Television is available to programmes that:

·       Pass the cultural test

·       Are intended for broadcast

·       Are a drama, comedy or documentary

·       Have at least 10% of their total production costs relating to goods and services used or consumed in the UK

·       Have an average qualifying production cost per hour of production length that is not less than £1 million per hour.

·       Have a slot length that relates to the programme that is greater than 30 minutes

 If you're a Film, animation or TV production company seeking creative industry tax relief contact us