Creative industry tax reliefs

Eight Corporation Tax reliefs and two Corporation Tax expenditure credits are available for qualifying businesses in the creative industries.

These tax reliefs encourage growth and innovation within sectors such as film, television, animation, video games, and more.

How creative industry tax reliefs work

Creative industry tax reliefs allow eligible businesses to:

• increase their allowable expenditure
• reduce their Corporation Tax liability

If your business is making a loss, it may be possible to surrender that loss and convert some or all of it into a payable tax credit.

You can claim the following reliefs on your Company Tax Return:

• Film Tax Relief
• Animation Tax Relief
• High-end Television Tax Relief
• Video Games Tax Relief
• Children's Television Tax Relief
• Theatre Tax Relief
• Orchestra Tax Relief
• Museums and Galleries Exhibition Tax Relief

How creative industry expenditure credits work

In addition to tax reliefs, creative industry businesses can benefit from expenditure credits, which provide a taxable credit based on the amount of allowable expenditure. These credits:

• are used to pay off your Corporation Tax liability
• can also be set against other tax liabilities
• provide a payable credit for any remaining amount

The two available expenditure credits are:

• Audio-Visual Expenditure Credit
• Video Games Expenditure Credit

For more information, read detailed guidance in the creative industries expenditure credit manual.

Who can claim creative industry tax reliefs

Your company can claim creative industry tax reliefs if:

• it is liable to Corporation Tax
• is directly involved in the production and development of:
  • films
  • high-end television
  • children's television
  • animation television
  • video games
  • theatrical productions
  • orchestral concerts
  • museum or gallery exhibitions

Additionally, your company must:

• be actively involved with decision-making
• directly negotiate, contract and pay for rights, goods and services
• hold responsibility from the start of pre-production until completion of the project

For theatrical productions, orchestral concerts or exhibitions, your company must be responsible for producing, running and closing the production.

Cultural test for tax relief eligibility

To qualify for creative industry tax reliefs, all films, television programmes and video games must be certified as British by:

• passing a cultural test, or
• qualifying through an international co-production treaty

The British Film Institute (BFI) manages certification for the Department for Digital, Culture, Media and Sport. The BFI will issue:

• an interim certificate for unfinished work
• a final certificate once production has finished

For more certification information, visit the BFI website.

For any questions about claiming creative industry tax reliefs, contact the Creative Industries Unit at HM Revenue & Customs.