Creative Industries Tax Reliefs are a suite of eight tax reliefs introduced by the government to assist UK companies involved in the arts, with additional tax breaks either through enhanced deductions of qualifying costs, or, in some circumstances a cash credit from HMRC. The relief works similarly to reliefs available to companies undertaking qualifying research and development activities.
The eight reliefs available are:
- Film Tax Relief
- Animation Tax Relief
- High-end Television Tax Relief
- Children’s Television Tax Relief
- Video Games Tax Relief
- Theatre Tax Relief
- Orchestra Tax Relief
- Museums and Galleries Exhibition Tax Relief
The film tax relief was first introduced back in 2007 with animation and high-end television tax reliefs following in 2013. Since then the additional reliefs have been introduced over the years with the museum and galleries exhibition relief being the most recent introduction in 2017. As one would expect, the availability of the relief is subject to fulfilling various conditions and criteria.
For the film, animation, television and video games reliefs the production must pass a cultural test or qualify through an internationally agreed co-production treaty. The other reliefs are not subject to the cultural test, however, they are subject to other criteria in order to benefit from the relief.
With specific eligibility criteria to be met, and with only certain costs qualifying for the enhanced relief, the rules can be complicated to interpret.