On 24 August 2021 HMRC published updated statistics for creative industries tax relief for 2020/21, showing that GBP 1.31 billion was paid out in tax relief for creative industries in 2020/21. Almost half the relief given in the period related to film tax relief and almost 30% of the relief related to high end television tax relief.
Film tax relief
Film tax relief (FTR) is available on 25% of 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 2020/21, a total of GBP 611 million of FTR was granted in relation to 900 claims, relating to 870 films.
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 2020/21, GBP 380 million of HETV tax relief was paid in response to 315 claims, representing 315 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 2020/21, GBP 18 million of ATR was paid in relation to 90 claims, relating to 100 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. In 2020/21, GBP 180 million of VGTR was given in relation to 350 claims, representing 640 games.
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 2020/21, GBP 19 million of CTR was paid in response to 65 claims, relating to 105 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 2020/21 GBP 74 million of TTR was paid in response to 1,070 claims, representing 3,660 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 2020/21 GBP 11 million of OTR was paid in response to 175 claims, relating to 750 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 2020/21 a total of GBP 14 million of MGETR was paid in response to 190 claims, relating to 1,555 exhibitions.
