Creative arts tax reliefs and a post lockdown boost?

As lock-down finally eases, one of the main sectors to suffer over the past 18 months has been the creative arts industry. Several HMRC tax relief schemes do exist though that may assist companies in this sector.

The 8 schemes all seek to enhance allowable expenditure, reducing corporation tax payable by profit making companies or producing a repayable tax credit for loss making companies.

Our charitable company clients can still benefit despite being exempt from corporation tax as HMRC will issue a tax credit payment based on a loss that the enhanced deduction creates.

The 8 creative industry tax relief schemes are as follows:

  1. Film Tax Relief
  2. Animation Tax Relief
  3. High-end Television Tax Relief
  4. Video Games Tax Relief
  5. Children’s Television Tax Relief
  6. Theatre Tax Relief
  7. Orchestra Tax Relief
  8. Museums and Galleries Exhibition Tax Relief

Your company must have responsibility throughout development, from the start of pre-production until the completion of the film, programme or game.

For theatrical productions, orchestral concerts or exhibitions, the company must be responsible for producing, running and closing the production.

To qualify for creative industry tax reliefs, all films, animation and television programmes or video games must be certified as British.