UK Creative Industry Tax Reliefs: Everything You Need to Know

If you're working in the creative industry, you might be aware that the cost of production and filming is significantly high. For this reason, and to provide aid to those who wish to work with the government on their side, the UK Creative Industry Tax Reliefs were introduced. These reliefs are granted to qualifying companies working within the UK tax net. Through them, qualifying companies can then claim 25% of their losses to enhanceable expenditure or tax deduction of a maximum of 100% of enhanceable expenditure. The following are the parties that can avail of these reliefs:

• Television production companies
• Film production companies
• Orchestra production companies
• Theatre production companies
• Video games development companies

UK Creative Industry Tax Reliefs

In particular, there are 6 different UK Creative Industry Tax Reliefs that the companies mentioned above can avail. Let’s take a look at each of their elements and how they work:

1.     Film Tax Relief

British films that are intended for theatrical releases can use the Film Tax Relief with up to 10% of the production costs generated via activities in the country. Companies can either claim the entire UK core expenditure or 80% of the total core expenditure. Film Tax Relief is granted to those productions that qualify as an official co-production or pass the cultural test.

2.     Animation Tax Relief

Animation Tax Reliefs are granted to those productions intended for broadcast in the country. In addition to the existing Film Tax Relief policies, the companies must also have a total core expenditure of 51% on animation. The programme should be made within the European Economic Area [EEA]. The enhanceable expenditure policies are the same as previously mentioned.

3.     High-End TV and Children’s Programming Tax Relief

Documentary, comedy, and drama television made within the EEA fall within the high-end television bracket. If the production has an hourly cost of £1million or above and the programme's slot length is 30 minutes, or above, they would qualify for the high-end TV programming tax relief.

4.     Video Games Production Tax Relief

Video Games Production Tax Relief is granted to companies when the games they produce are intended for supply, 25% of their production costs are in the EEA, and certified as culturally British. Games based on promotion, advertising, and gambling are excluded from this tax relief.  The claims and enhanceable expenditures are the same as the previously mentioned policies.

5.     Theatre Tax Relief

Static or touring productions with live performances and with 25% of costs within EEA qualify for Theatre Tax Relief. These can only be accepted for plays, musicals, ballets, circuses, operas, or similar pieces. While the enhanceable expenditures are the same, the maximum loss claims for static and touring productions are different. Static and touring performances can claim 20% and 25% of losses, respectively.

6.     Orchestra Tax Relief

Introduced in 2016, the Orchestra Tax Relief is granted to parties involved in producing live performances and includes only production and creative costs. The enhanceable expenditures and claims are the same as the previously mentioned relief policies.

Looking for UK Film Tax Relief Experts?

There’s a lot more that goes into calculating and applying for UK Creative Tax Reliefs. If you need the help of our UK Tax Relief Experts, give us a call on +44 1214 399760 now! We also offer expert UK Tax services in other areas, such as Capital Gains Tax, Corporation Tax, and R&D Tax Credits. Hurry up, and don't miss your chance to speak to our UK Creative Industry Tax Reliefs experts!

Disclaimer: Please be advised that the content of this blog is meant to serve as general information only, and should not be considered as tax advice. Given the complexity of tax laws and the potential for regulatory changes, it is strongly advised that you seek the guidance of a qualified tax professional or financial advisor prior to making any decisions based on the information contained in this blog. Please note that neither Gondal Accountancy nor its staff assume any responsibility or liability for any decisions made or not made as a result of the information presented in this article.