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Last Updated: 23 July 2020
Creative Industries Tax Reliefs, are a growing suite of special company tax reliefs that are similar in form to Research & Development tax relief.
They comprise:
- Film tax relief.
- Animation tax relief.
- High-end TV and children's programming.
- 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 can claim either:
- An additional tax deduction (the enhancement) of up to 100% of enhanceable expenditure or,
- if a loss is surrendered, 25% of the loss up to the amount of enhanceable expenditure
Reliefs at a glance
Tax relief |
Film |
Animation |
High-end TV |
When from: |
1 Jan 2007 |
1 April 2013 |
1 April 2013
Extended to Children's TV 1 April 2015
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Conditions |
- British film
- Intended for theatrical release
- At least 10% of the total production costs relate to activities in the UK
- Prior to 1 April 2014 this figure was 25%
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- A programme made in the EEA
- Intended for broadcast
- At least 51% of the total core expenditure is on animation
- At least 10% of the total production costs relate to activities in the UK
- Prior to 1 April 2015 this figure was 25%
- Animations commissioned together are treated as one programme
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- A programme made in the EEA
- Intended for broadcast
- The programme is a drama, comedy or documentary
- At least 10% of the total production costs relate to activities in the UK
- Prior to 1 April 2015 this figure was 25%
- The average qualifying production costs per hour of production length is not less than £1million per hour (not applicable for Children's TV)
- The slot length in relation to the programme must be greater than 30 minutes (not applicable for Children's TV)
- Programmes commissioned together are treated as one programme
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Exclusions |
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No relief for a programme that:
- is an advertisement or promotional programme
- is a news, current affairs or discussion programme
- is a quiz or game show, panel show, variety show, or similar programme
- consists of or includes an element of competition or contest
- broadcasts live events, including theatrical and artistic performance
- is produced for training purposes
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No relief for a programme that:
- is an advertisement or promotional programme
- is a news, current affairs or discussion programme
- is a quiz or game show, panel show, variety show, or similar programme (but see exception for children's programme)
- consists of or includes an element of competition or contest
- broadcasts live events, including theatrical and artistic performance
- is produced for training purposes
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Enhanceable Expenditure |
The lesser of
- UK qualifying expenditure
- 80% of total qualifying expenditure
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The lesser of
- UK qualifying expenditure
- 80% of total qualifying expenditure
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The lesser of
- UK qualifying expenditure
- 80% of total qualifying expenditure
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Max claims |
Prior to 1 April 2015
Limited-budget films relief
Limited budget means £20 million or less
Qualifying companies can claim either:
- an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
- if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure
Other films are entitled to either:
- a tax deduction of 80% of enhanceable expenditure
- if a loss is surrendered: 20% of the loss up to the amount of the enhanceable expenditure
From 1 April 2015
The distinction between limited budget and other films is removed.
Qualifying companies can claim either:
- an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
- if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure
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Qualifying companies can claim either:
- an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
- if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure
|
Qualifying companies can claim either:
- an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
- if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure
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Links |
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Tax relief |
Video Games Development |
Theatre |
Orchestras |
When from: |
1 April 2014 |
1 September 2014 |
1 April 2016 |
Conditions |
- Video games that are certified as culturally British
- Intended for supply
- At least 25% of production costs are incurred in the EEA
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- At least 25% of production costs are incurred in the EEA
- A theatrical production includes a ballet, play, opera, musical, circus or other dramatic piece
- Performances must be live
- A production may be a touring production or static
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New legislation included in the Finance Act 2016
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Qualifying companies must be engaged in the production of live orchestral performances
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Tax relief will be in respect of the creative and production costs incurred in producing live orchestral performances
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Exclusions |
No relief for games that are produced for:
- advertising
- promotion
- gambling
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No relief if:
- there is an advertising or promotion purpose
- the performance consists of or includes an element of competition or contest
- a wild animal is to be used in any performance
- the production is of a sexual nature
- making a relevant recording is one of the main objects of the production
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Proposed exclusions:
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entertainment with a competitive element
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performances where the sole or main purpose is for advertising
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performances intended solely or mainly for recording or broadcast
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Enhanceable expenditure |
The lesser of
- EEA qualifying expenditure
- 80% of total qualifying expenditure
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The lesser of
- EEA qualifying expenditure
- 80% of total qualifying expenditure
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The lesser of
- EEA qualifying expenditure
- 80% of total qualifying expenditure
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Max claims |
Qualifying companies can claim either:
- an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
- if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure
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Qualifying companies can claim either:
- an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
- if a loss is surrendered: touring performances 25% / static performances 20% of the loss up to the amount of enhanceable expenditure
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Qualifying companies can claim either:
- an additional tax deduction (the enhancement) of 100% of enhanceable expenditure
- if a loss is surrendered: 25% of the loss up to the amount of enhanceable expenditure
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Links |
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Further information
HMRC guidance: Corporation Tax: Creative industries tax reliefs
Updates
20 September 2016 updated for Finance Act 2016 receiving Royal Assent.
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