On 18 August 2022 HMRC published updated statistics for creative industries tax relief for 2021/22, showing that GBP 1.05 billion was paid out in tax relief for creative industries in 2021/22. This represented a sharp decrease in the amount of tax relief compared to the previous year (GBP 1.32 billion in 2020/21) mainly due to a decrease in the amount of film tax relief given. Around 35% of the relief given in the period related to film tax relief, and 38% of the relief related to high end television tax relief.

Film tax relief

Film tax relief (FTR) is available on 25% of the qualifying production expenditure and is available for British qualifying films that have either passed a cultural test or are qualifying co-productions, subject to certain conditions. In 2021/22, a total of GBP 362 million of FTR was granted in relation to 720 claims, relating to 715 film projects. The amount of film tax relief given decreased sharply compared to the previous year, reflecting the impact of Covid restrictions.

High End Television Tax Relief

The high-end television (HETV) tax relief makes available a tax deduction for qualifying companies. A claim can be made if the programme passes a cultural test; is intended for broadcast; and is a drama, comedy or documentary, subject to certain conditions. In 2021/22, GBP 397 million of HETV tax relief was paid in response to 370 claims, representing 355 programmes.

Animation Tax Relief

Animation tax relief (ATR) supports the production of culturally relevant animations in the UK and allows a tax deduction or a repayable tax credit for qualifying companies. A company must qualify under a cultural test and certain other criteria. In 2021/22, GBP 17 million of ATR was paid in relation to 80 claims, relating to 85 programmes.

Video Games Tax Relief

Under video games tax relief (VGTR) 25% tax relief is granted on a maximum of 80% of the production budget of a qualifying video game. A company can make a number of claims for tax relief during the production process. In 2021/22, GBP 197 million of VGTR was given in relation to 330 claims, representing 580 games.

The amount of VGTR given in 2021/22 increased by 4% over the previous year, a sign that the video games industry was resilient during the pandemic.

Children’s Television Tax Relief

Children’s television tax relief (CTR) is generally similar to HETV and animation tax relief, and claimants are subject to a cultural test and other conditions. In 2021/22, GBP 16 million of CTR was paid in response to 70 claims, relating to 85 programmes.

Theatre Tax Relief

Theatre tax relief (TTR) may be claimed by a qualifying production company playing before live paying audiences or with educational purposes, subject to certain conditions. In 2021/22 GBP 38 million of TTR was paid in response to 620 claims, representing 2,055 productions.

Orchestra tax relief

Orchestra tax relief (OTR) is available for a qualifying orchestral production company putting on a qualifying orchestral concert (with at least 12 instrumentalists). In 2021/22 GBP 10 million of OTR was paid in response to 100 claims, relating to 510 productions.

Museums and Galleries Exhibition tax relief

Museums and galleries exhibition tax relief (MGETR) is available to charitable companies, subsidiaries of charities and local authorities. Tax credits are restricted to a maximum per exhibition of GBP 100,000 (touring) or GBP 80,000 (non-touring). In 2021/22 a total of GBP 9 million of MGETR was paid in response to 145 claims, relating to 1,060 exhibitions.

Next steps

Further updates to the statistics will be made in the summer of 2023. Monitoring of the costs and benefits of tax incentives is important for determining the effectiveness of each incentive and for making decisions on any policy changes required. The collection and analysis of statistics helps policy makers to ensure that the tax incentives continue to be targeted correctly.