Tax Relief

The UK currently has 8 creative industries tax relief schemes:

  • Film Tax Relief
  • Animation Tax Relief
  • High-end Television Tax Relief
  • Video Games Tax Relief
  • Children’s Television Tax Relief
  • Theatre Tax Relief
  • Orchestra Tax Relief
  • Museums and Galleries Exhibition Tax Relief

The tax relief is claimed through the Corporation Tax returns, and enable tax relief at a rate of 25% to be claimed on, for example, feature films intended for theatrical release, or High End TV productions where the cost is in excess of one million pounds per broadcast hour.  The total amount of the relief is subject to a cap of 80% of total core expenditure, therefore giving an effective rate of relief of 20% (25% of 80%) of total core expenditure.

All qualifying productions are subject to a cultural test and BFI has to issue a preliminary certificate and a final certificate under the scheme if a production company wants to make an interim and a final claim. A tax credit repayment is made by HMRC after accounts and a tax return have been submitted. Not all expenditure qualifies as core expenditure and expenditure such that relates to finance, marketing or speculative development does not qualify.

The regulations concerning UK tax relief is complicated and anyone involved in this area is advised to seek expert advice from a qualified accountant with substantial Film Industry expertise.

Attached is a link to the HMRC website

HMRC Creative Industries Tax Relief