1. Film Tax Relief
8. Museums and Galleries Exhibition Tax Relief
7. Orchestra Tax Relief
6. Theatre Tax Relief
5. Video Games Tax Relief
4. Children’s Television Tax Relief
3. High-end Television Tax Relief
2. Animation Tax Relief
For all British qualifying films of any budget level, the Film Production Company can claim a payable cash rebate of up to 25% on UK qualifying expenditure. The Tax Relief is capped at 80% of the core expenditure i.e., even if you have 100% UK-qualifying expenditure, tax relief is only payable on up to 80%.
To qualify as British, the project in question need to achieve at least 18 from a possible 32 points on the Cultural Test, which looks at content, contribution, hubs, and practitioners.
1. Film Tax Relief
2. Animation Tax Relief
An Animation Production Company (APC) can claim a tax relief of up to 25% of qualifying expenditure for qualifying animation programmes. The project must be an animated programme, although it may be mixed content. To qualify as an animation programme, at least 51% of the core expenditure on the completed programme must be on animation production expenditure.
To qualify for animation programme tax relief, projects must:
Have a minimum 10% of core expenditure spent in the UK
Be intended for broadcast (including internet broadcast)
Have one APC registered as a UK Limited Company with Companies House and set up before animation shooting begins
The APC must be responsible for all the animation programme making activity from pre-production through to completion
Must qualify as British via the Cultural Test or be an official co-production, where the project needs 16 of a possible 31 points.
3. High-end Television Tax Relief
For scripted television projects with a minimum core expenditure of £1 million per broadcast hour, the TV Production Company can claim a payable cash rebate of up to 25% on UK qualifying expenditure.
Individual episodes of 30 minutes or less can qualify for the Tax Relief when commissioned together, however the £1 million average core spend per slot hour requirement would still need to be met (e.g., six 25-minute episodes commissioned together would qualify as long as the average core spend was at least 1 million per slot hour).
The Tax Relief is capped at 80% of the core expenditure i.e., even if you have 100% UK qualifying expenditure, tax relief is only payable on up to 80%.
To be eligible for the relief, the project must qualify as British via the Cultural Test or be an official co-production, where the programme needs 18 of a possible 35 points.
4. Children's Television Tax Relief
This is an extension of high-end television and animation relief but is specifically for the producers of children’s television programmes. A company will qualify where:
The programme is certified as British by the British Film Institute, where 18 out of 35 points across the Cultural Test must be met
The programme is intended for broadcast — this includes streaming online
The primary audience for the programme is expected to be under the age of 15
At least 10% of the ‘core costs’ relate to activities in the UK
5. Video Game Tax Relief
A video game will be eligible for video games tax relief if it is intended for supply to the general public and if it qualifies for a British Video Game Certificate under the Cultural Test Regulations, where 16 out of a possible 31 points must be met. Only a company that qualifies as the Video Games Development Company in relation to the game in question will be able to make the claim – individuals, partnerships and limited liability partnerships are excluded.
The relief available is a tax credit equal to 25% of the core expenditure which is ’used or consumed’ in the European Economic Area (EEA), up to a cap of 80% of total core expenditure. Therefore, in cases where 80% or more of the total core expenditure is incurred in the EEA, the payable tax credit is capped at 20% (25% of 80%) of the total core expenditure.
To qualify, a company must either be incorporated in the UK or must have a UK permanent establishment that falls within the charge to UK Corporation Tax, and must:
Be responsible for designing, producing and testing the video game
Be actively engaged in production, planning and decision making throughout the process
Directly negotiate, contract and pay for rights, goods and services in relation to the video game
6. Theatre Tax Relief
Theatre Tax Relief is worth up to 25% of the core production costs of the piece. Theatre Production Companies can claim relief on the lower of:
It must put on a play, opera, musical or dramatic piece (where the performers are live and play roles), or a ballet.
It must be responsible for the production and creative and technical decision making.
At least 25% of your core production costs must be made in the UK or the EEA.
All or a high majority of performances are for paying members of the public or provided for educational purposes.
80% of the total core expenditure, or
The actual EEA core expenditure incurred.
If the company is profitable, the tax relief can be used to reduce a Corporation Tax bill. If loss-making, claimants can receive a cash payment from HMRC at a rate of 20% and 25% if the production tours.
To qualify for this relief, a business needs to meet the following criteria:
7. Orchestra Tax Relief
The amount of Orchestra Tax Relief available is based on the European core expenditure of each separate orchestral trade. The Orchestra Production Company will receive an additional deduction of up to 80% of the total core expenditure incurred on the production, claimed on the lower of:
reduce the taxable profits of the separate orchestral trade (so that the company pays less tax), or
create or increase a tax loss, which the company can surrender in return for a payable Orchestra Tax Credit.
80% of total core expenditure, and
the actual European core expenditure incurred. European core expenditure is the amount of core expenditure incurred by the OPC that is also European expenditure. European expenditure is expenditure on goods or services that are provided from within the UK or EEA.
The additional deduction can:
This relief is applicable to many types of instrumental groups, not just a traditional orchestra. A company meeting the definition of an Orchestral Production Company is entitled to claim relief on European core expenditure on a concert or series of concerts provided:
The concert or series is intended to be performed live before paying members of the general public, or provided for educational purposes,
The concert or series is one that is a qualifying concert or series, and not less than 25% of the total core expenditure is European expenditure.
8. Museums and Galleries Exhibition Tax Relief
In order to qualify for this relief, claimants must be a charitable company, or a company wholly owned by a charity or local authority, which is responsible for maintaining a museum or gallery.
The claimant must be responsible for producing, running and deinstalling the exhibition at a venue, actively engaged in the decision making and should directly negotiate for, contract for, and pay for rights, goods and services relating to the exhibition.
The benefit is based on the level of expenditure incurred in producing, installing and deinstalling the exhibition. This excludes running costs incurred after the exhibition opens to the general public. The relief generates an enhanced tax deduction which is based on the level of spend incurred developing an eligible exhibition. In most cases this results in a cash credit. The cash is unrestricted and may be used for whatever purpose the claimant wishes. The rates of benefit vary across different periods and for touring and non-touring exhibitions but can be as high as 40% of expenditure.
