.png)
.png)
Following the government’s Budget announcement of tax reliefs targeted at creative industries, a consultation document has been published to gather comments on the proposed design characteristics of reliefs for the animation, high-end television and video game sectors.
The condoc does not include the proposed rates of relief, but they are expected to be largely similar to the current film tax relief, which is worth about 12% to 20% of core expenditure depending on the budget of the production and whether a payable credit is claimed, and has led to £1bn extra investment in British cinema.
A separate consultation on the design of suitable cultural tests for each proposed relief will be issued in the autumn, following summer discussions with industry-focused working groups and the European Commission.
An event to discuss initial industry views on the proposals will be held on 10 July at HM Treasury. Places can be booked by email, no later than 4 July.
Deloitte tax director Rachel Austin noted that ‘slightly different rules are proposed for each of the three creative sectors, but each includes a cultural test, a requirement for 25% of core expenditure to be incurred in the UK and the option of receiving a cash tax credit.’
She warned that the reliefs were ‘likely to include rules designed to prevent abuse, such as offloading the reliefs to private individuals through loss schemes’.
