Guide to: Creative Industry Tax Relief

29th April 2019

The Creative Industry Tax Relief is actually a group of 8 Corporate Tax reliefs.  It allows tax deductions for all qualifying companies and even enables some businesses to claim a tax credit depending on circumstances and taxable profits.  The reliefs included in the Creative Industry Tax Relief allow companies to increase the value of their allowable expenditure.

The 8 Creative Industry Tax Reliefs

The 8 core areas of Creative Industry Tax Relief are as below, and each of them has its own qualifying conditions and rates of relief.

  • Film Tax Relief (FTR)
  • Orchestra Tax Relief (OTR)
  • Video Games Tax Relief (VGTR)
  • Theatre Tax Relief (TTR)
  • High-end Television Tax Relief (HTR)
  • Animation Tax Relief (ATR)
  • Children’s Television Tax Relief (CTR)
  • Museums and Galleries Exhibition Tax Relief (MGETR)

Which companies are eligible?

Your company must be paying Corporation Tax and it must be involved in the production/development of one of the following areas:

  • Video Games
  • Theatrical Productions
  • Animation Programmes
  • Museum or gallery exhibitions (restrictive eligibility criteria)
  • High-end and children’s TV programmes
  • Particular films
  • Orchestral concerts

In the areas of video games, film, animations and TV programmes then your business will need to pass a “cultural test” or qualify by means of an internationally-agreed co-production treaty, to be certified by the British Film Institute.

Exhibitions, orchestral concerts and theatrical productions do not have to pass the cultural test.

creative industry tax relief

Where do you start?

There is a specialist unit within HMRC that deals with claims related to the creative industry tax relief.  You can reach them at this link Creative Industry Unit.  You can also consult with your accountant or financial professional for guidance and support.

All businesses who would like to claim for the Creative Industry Tax Relief need to do so via their usual Company Tax Return.  Bear in mind that you will need your BFI certification if you are required to do a cultural test.  You are able to have an interim certificate while you are still completing your production but this must be replaced with a final certificate, otherwise you may have to pay back any relief that you claimed during the interim period.  There is an allowance period of 1 year in which to amend or withdraw your claim after filing.

Information correct at the time of publication.  You should always seek professional advice when making financial decisions and this article does not constitute financial advice.  April 2019.

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