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HMRC have published a guide to creative industry tax reliefs, which allow qualifying companies to claim a larger deduction a payable tax credit when calculating their profits for corporation tax, by increasing the amount of allowable expenditure.
A company that makes a loss may be able to surrender the loss and convert some or all of it into a payable tax credit.
HMRC have published a guide to creative industry tax reliefs, which allow qualifying companies to claim a larger deduction a payable tax credit when calculating their profits for corporation tax, by increasing the amount of allowable expenditure.
A company that makes a loss may be able to surrender the loss and convert some or all of it into a payable tax credit.
Film tax relief was introduced in April 2007, while animation relief and high-end television relief were introduced in April 2013. A fourth tax break for video games development is awaiting state aid approval from the EU.
To qualify for the creative industry tax reliefs all films, TV programmes, animations or video games must pass a cultural test or qualify through an internationally agreed co-production treaty certifying that the production is a British film, programme or video game. Formal certification is required to qualify. Certification and qualification is administered by the British Film Institute on behalf of the Department for Culture Media and Sport.
Detailed guidance on the taxation of film and television production companies, including examples of how the relief is calculated, is available in the Revenue’s Film Production Company Manual, which is expected to be updated in the autumn to include other creative industry tax reliefs.
