HMRC published updated statistics for creative industries tax relief for 2019/20 on 13 August 2020, showing that GBP 1.11 billion was paid out in tax relief for creative industries in 2019/20. Almost half the relief given related to film tax relief and almost 30% of the relief related to high end television tax relief.
Film tax relief
Film tax relief is given at 25% of qualifying production expenditure and is available in the case of British qualifying films that have either passed a cultural test or are qualifying co-productions, subject to certain conditions. In 2019/20 a total of 300 British films were completed and relief claimed on expenditure of GBP 2.5 billion.
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 program passes a cultural test; is intended for broadcast; and is a drama, comedy or documentary, subject to certain conditions. In 2019/20 relief was claimed for a total of 110 high end television programmes with expenditure of GBP 1.5 billion.
Animation tax relief
This relief 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 2019/20 relief was claimed for 35 animations with total expenditure of GBP 33 million.
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 2019/20 relief was claimed on 150 video games with total expenditure of GBP 355 million.
Children’s Television Tax Relief
Children’s television tax relief is generally similar to HETV and animation tax relief, and claimants are subject to a cultural test and other conditions. In 2019/20 relief was given for 35 programmes with expenditure of GBP 30 million.
Theatre Tax Relief
This relief may be claimed by a qualifying production company playing before live paying audiences or with educational purposes, subject to certain conditions. In 2019/20 a total of GBP 71 million of theatre tax relief was granted in relation to 1,115 claims.
Orchestra tax relief
Orchestra tax relief is available for a qualifying orchestral production company putting on a qualifying orchestral concert (with at least 12 instrumentalists). In 2019/20 a total of GBP 18 million of orchestra tax relief (OTR) was granted in relation to 165 claims, concerning a total of 565 productions.
Museums and Galleries Tax Relief
Museum 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 2019-20 a total of GBP16 million of MGETR was given in relation to 170 claims which represented 1,045 exhibitions.
