Introduced by HMRC as an initiative to help and support the growth of businesses in the creative industry, these tax reliefs allow qualifying creative industry companies to claim a larger deduction when calculating taxable profit, and in certain circumstances when making a loss to claim a payable tax credit.
At Blinkhorns we have vast experience in dealing with companies based in the creative and entertainment industry and specialise in the following creative industry tax reliefs:
Film Tax Relief (FTR)
Film Tax Relief was introduced in April 2017 and is available to UK qualifying films of any budget level.
Films must pass the BFI cultural test or qualify as an official co-production with a minimum of 10% of the total production costs relating to activities in the UK.
More information on the BFI cultural test can be found on the BFI website - www.bfi.org.uk
Theatre Tax Relief (TTR)
Introduced in September 2014 as part of the Finance Act 2014, Theatre Tax Relief is intended to recognise the cultural value theatre brings to the UK.
A company will qualify for TTR if it meets the following criteria,
There is no need for a BFI cultural test when applying for TTR.
There are two rates of payable tax credits; 25% for touring productions and 20% for others.
High-end Television Tax Relief (HTR)
High-end Television Tax Relief is available to programmes that are considered to be either a drama, a comedy or a documentary.
The programme must be intended for broadcast and must pass the BFI cultural test or qualify as an official co-production. As with FTR, for HTR to be claimed at least 10% of the total production costs must relate to activities in the UK.
Children’s Television Tax Relief (CTR)
Children’s Television Tax Relief was introduced in April 2015 and is an extension of HTR, specifically applicable to the producers of children’s television programmes. The programmes must be for children, and the primary audience is expected to be under the age of 15.
As with HTR, the relevant programme must pass the BFI cultural test or must qualify as an official co-production, with at least 10% of the total production costs relating to activities in the UK.
Animation Tax Relief (ATR)
Animation Tax Relief is available on an animation if the programmes meet the following qualifying conditions:
The programme must pass the BFI cultural test or must qualify as an official co-production.
At least 10% of the total production costs must relate to activities in the UK.
At least 51% of the total core expenditure is on animation.