Creative Sector Tax Breaks
The UK government intends to introduce a package of tax reliefs, targeted at animation, high-end TV and video games production companies as part of its ambition to make the UK the technology centre of Europe.
The reliefs, which aim to be among the most generous in the world, providing an estimated £50m of annual funding to the creative sector, will support technological innovation and ensure that creative industries continue to contribute to economic growth and British culture
The relief will only apply to limited companies who meet government defined criteria.
It is proposed that the following criteria will need to be met:
– The company must be producing an animated/high end television programme or video game which is intended for broadcast or commercial release.
– The content must be certified as a cultural product by satisfying a cultural test (Likely to be administered by the Department of Culture, Media and Sport)
– At least 25% of the core expenditure incurred by the production company must relate to expenditure on goods or services used or consumed in the UK.
The government are currently consulting on the proposals and it is widely believed that they will come into force next summer.
Further details are sent out on our ‘Creative Sector Tax Reliefs’ fact sheet.