Creative Industries Tax Relief
Creative Industry Tax Relief is available to companies within the Theatre, Film, Video Games, Orchestra, TV Animation and Museums and Galleries sectors. They are eight separate 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.
This programme of tax relief is designed to promote culturally relevant productions in the UK, to bring investment into UK productions and to ensure that the UK retains a critical mass of creative skill and infrastructure.
To apply, companies need to:
– be liable for Corporation Tax
– be directly involved in the production and development of qualifying activities:
- certain films
- high-end and children’s television programmes
- animation programmes
- video games
- theatrical productions
- orchestral concerts
- museum or gallery exhibitions
– and, in some cases, pass a cultural test.
What we do
Burton Sweet has creative industries tax specialists who can make sure you receive the full range of available government funding. We work with individuals and companies of all shapes and sizes to help them get the best results from their tax relief claim.
We know what HMRC are looking for and we work with you to make a successful claim. Our clients include video games companies, film companies, orchestracompanies, theatre companies and museums and art galleries across the South West.
Whether you are a commercial company, a charitable company or a not-for-profit company, we are here to help you claim the maximum tax credit to which you are entitled.
Our Service includes:
Navigating you through the claims process from recording and reporting to final submission.
Applying specialist knowledge of the creative tax regime to help you identify qualifying productions.
Considering other relevant or complementary tax reliefs that may apply.
Identifying, and improving methods for identifying, core expenditure to maximise effectiveness of the reliefs.
Presenting information to minimise exposure to challenges from HMRC.
Are you eligible for Creative Industries Tax relief?
The cultural test
To qualify for Creative Industry Tax Reliefs, all films, television programmes, animations or video games must pass a cultural test or qualify through an internationally agreed co-production treaty – certifying that the production is a British film, British programme or British video game. In all cases, formal certification is required to qualify.
Theatrical productions, orchestral concerts, and exhibitions don’t have to apply for and pass a cultural test.
Certification and qualification is administered by the British Film Institute (BFI) on behalf of the Department for Digital, Culture, Media and Sport (DCMS). The BFI will issue an interim certificate for uncompleted work or a final certificate where production has finished.
Film Tax Relief (FTR)
Film Tax Relief (FTR) aims to promote the sustainable production of culturally British films. The relief is available when films either pass a cultural test or are a qualifying co-production, and must be intended for theatrical release. At least 10% of the total production costs must relate to activities in the UK.
There were 180 films completed in the UK in 2017-18 which claimed FTR.
Each film may make several claims during the production process.
Animation Tax Relief (ATR)
The relief is available for animation programmes that pass the cultural test or qualify as an official co-production and are intended for broadcast.
There were 15 animations completed in the UK in 2017-18 which claimed ATR.
Each programme may make several claims during the production process.
High-end Television Tax Relief (HTR)
High-end Television Tax relief (HTR) aims to promote the sustainable production of culturally relevant high-end television programmes in the UK.
The relief is available for programmes if they pass the cultural test or qualify as an official co-production and are intended for broadcast. The programme needs to be a drama, comedy or documentary with a slot length of more than 30 minutes.
At least 10% of the total production costs should relate to activities in the UK, with the average qualifying production costs per hour being more than £1 million per broadcast hour.
Children’s Television Tax Relief (CTR)
Children’s Television Tax Relief (CTR) aims to encourage the production of culturally British children’s television programmes in the UK. It is an extension of High-End Television Tax Relief and animation relief but is specifically aimed at the producers of children’s television programmes. CTR is not subject to the £1 million per programme hour threshold or the 30 minute slot length that applies to high-end television programmes.
The relief is available for British qualifying children’s programmes if they pass the cultural test or qualifies as an official co-production and are intended for broadcast. The programme must be for children, with the primary audience expected to be under the age of 15. At least 10% of the total production costs relate to activities in the UK.
Video Games Tax Relief (VGTR)
Video Games Tax Relief (VGTR) aims to promote the sustainable production of culturally relevant video games in the UK. It is aimed directly at companies producing video games.
The relief is available for British qualifying video games if the video game is intended for supply and at least 25% of the core expenditure is incurred on goods or services that are provided from within the European Economic Area (EEA).
Theatre Tax Relief (TTR)
The relief is available for British theatrical production companies if their theatrical production is to be played before a live audience of paying members of the general public, or the production is for educational purposes. At least 25% of the total production costs must relate to expenditure within the EEA.
Theatrical production companies are not required to pass a cultural test to be eligible to claim TTR.
Orchestra Tax Relief (OTR)
A qualifying orchestral concert is one which is performed by instrumentalists in an orchestra, ensemble, group or band consisting of a minimum of 12 instrumentalists. The majority of the instruments shouldn’t be electronically amplified and the instrumentalists must be the primary focus of the concert. The concert should be for a paying public or for educational purposes and there should be a minimum of 25% EEA expenditure.
Orchestral production companies are not required to pass a cultural test to be eligible to claim OTR.
Since Orchestra Tax Relief was introduced in April 2016, £6.6 million has been paid out relating to 60 claims, which represent 205 productions.
Museums and Galleries Exhibition Tax Relief (MGETR)
Museums and Galleries Exhibition Tax Relief (MGETR) was introduced in April 2017. It is available to qualifying companies that put on an exhibition, a curated public display of an organised collection of objects or works which are considered to be of scientific, historic, artistic or cultural interest. A single object can also constitute an exhibition.
Museums and Galleries are not required to pass a cultural test to be eligible to claim tax relief.