Creative sector tax reliefs
If your company operates in the creative sector producing British films, TV programmes or video games, it could be in line for some attractive tax reliefs.
Film tax relief has been around for a number of years. It can be claimed by film production companies that produce British films, where at least 25% of the core costs arise in the UK. This percentage of costs is to reduce to 10% from April 2014.
Tax relief for TV productions is similar to film tax relief, but it only applies to expenditure incurred from 1 April 2013. As for films, the TV programmes must pass the ‘British’ test and at least 25% of the core expenditure should arise in the UK.
The tax relief for the production of video games (including computer games) hasn’t been implemented yet, as approval is needed from the EU on ‘state aid’ grounds. When approval is given, this tax relief could come into effect at short notice – possibly later this year.
In all cases (films, TV programmes or games) the tax relief is given by enhancing the deductible value of the production’s costs. The exact amount of relief given depends on what proportion of the costs actually arise in the UK, and on other conditions relevant to the product. Losses made on the production can also be converted into payable tax rebates.
We can help you understand all the conditions necessary to make a claim, so talk to us without delay.