Creative Industry Tax Reliefs

Creative Industry Professionals are unique. Bambridge Accountants are a team of chartered accountants that specialise in ensuring a tailored accounting service that maximises on the unique expenses, deductions and reliefs available to Professionals in the Creative Industry. 


Saving Creative Industry Professionals thousands every year


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'Creative industry tax reliefs' are a group of five corporation tax reliefs that allow qualifying companies to claim a larger deduction, or in some circumstances claim a payable tax credit when calculating their taxable profits.

Film Tax Relief was introduced in April 2007 and two additional reliefs were introduced in April 2013. These are Animation Tax Relief, High-end Television Tax Relief.  A fourth relief for Video Games Development was introduced on 1 April 2014. Finally, Theatre Tax Relief was introduced on 1 September 2014.

1. FILM TAX RELIEF

Your company will be entitled to claim Film Tax Relief (FTR) on a film as long as:

  • the film passes the culture test - it is considered a 'British film'
  • the film is intended for theatrical release
  • at least 25% of the total production costs relate to activities in the UK
  • the first day of principal photography took place on or after 1 January 2007

 

2. ANIMATION TAX RELIEF

Your company will be entitled to claim Animation Tax Relief (ATR) on an animation programme if:

  • the programme passes the cultural test - a similar test to that for Film Tax Relief but within the European Economic Area
  • the programme is intended for broadcast
  • at least 51% of the total core expenditure is on animation
  • at least 25% of the total production costs relate to activities in the UK

 

3. HIGH-END TELEVISION TAX RELIEF

Your company will be entitled to claim High-end Television Tax Relief (HTR) on a programme if:

  • the programme passes the cultural test - a similar test to that for Film Tax Relief but within the European Economic Area
  • the programme is intended for broadcast
  • the programme is a drama, comedy or documentary
  • at least 25% of the total production costs relate to activities in the UK
  • the average qualifying production costs per hour of production length is not less than £1million per hour
  • the slot length in relation to the programme must be greater than 30 minutes

4. VIDEO GAMES DEVELOPMENT RELIEF

The relief enables companies to be eligible for a payable tax credit worth 25% of qualifying production costs.

A cultural test will need to be met to claim the relief - certification is being administered by the BFI.

We can help and advise companies on the initial and final certification (including what costs you are allowed to claim).

5. THEATRE TAX RELIEF

The relief enables companies to be eligible for a payable tax credit worth between 20 and 25% of qualifying production costs.

If you are touring the production, the repayable tax credit will be 25% of the qualifying expenses. Other theatre productions can claim a repayable tax credit of 20% of the qualifying expenses.

Conditions:

 - at least 25% of the core expenses must be incurred in the UK or remainder of the EU

 - the theatre company must also be responsible for producing the content of the shows

The tax credit will be claimed through the company's tax return for the period.

Contact us for expert accounting advice for Creative Industry Professionals 

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