If your company is involved in the creative industry, then it could be eligible for significant tax relief from the Government.

These creative industry tax reliefs, of which there are eight in total, support the Government’s objective of becoming the technological centre of Europe, by promoting growth in the digital, creative, and other high-tech areas.

Your business can claim creative industry tax relief if it falls into the following categories:

  • it is liable to Corporation Tax
  • it is directly involved in the decision-making, production, and development (from start to finish) of:
    • Films
    • High-end animated and children’s television
    • Video games
    • Theatrical productions and orchestral concerts
    • Museum and gallery exhibitions
  • involved with decision-making
  • directly negotiates, contracts and pays for rights, goods and services

In order to claim the tax relief, the resulting production will need to pass a cultural test, qualifying it for a British Film Institute (BFI) certification.

All of the existing creative industry tax reliefs can obtain a deduction against Corporation Tax at the lower of 80 per cent of core costs, or total UK expenditure.

Where the business is loss making, a 25% tax credit can be obtained under all of the reliefs.

If you are unsure if your business qualifies for creative industry tax relief, get in touch with our expert accountants today.

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