Changes to creative tax reliefs

There are currently eight creative sector tax reliefs covering films high-end TV animations children’s TV video games theatres orchestras and museums and galleries. Administered through the corporate tax self-assessment regime these reliefs work cumulatively so each production trade is separately streamed and calculations are prepared based on financial results to date. The incentives broadly provide an additional corporation tax deduction of 80% of qualifying expenditure on creating new content for the general public. To the extent that the deduction creates or enhances a tax loss that loss may be surrendered for a payable tax credit.

There are rules setting out what types of productions qualify for each type of relief so there are some exclusions such as for advertising competitions and gambling. In addition only certain costs qualify so there are exclusions for costs such as marketing...