Creative Industry Tax Reliefs are a group of tax reliefs specifically targeted at Companies undertaking certain activities in the entertainment industries. There are 4 different groups of reliefs targeting specific industries and these are:-
• Film production (Film Tax Relief)
• Television production (Television Tax Relief)
• Video games development (Video Games Development Tax Relief)
• Theatrical production (Theatre Tax Relief)
The effect of the reliefs is to provide either an enhanced tax deduction for relevant qualifying expenditure or to give a repayable tax credit whereby the company can surrender a relevant trading loss to obtain a repayment directly from HMRC.
As with all tax reliefs there are detailed rules and conditions which must be met. There are restrictions for instance where a Company has made a claim to enhanced tax relief under the Research and Development legislation, but with up to a 100% additional tax deduction available the reliefs can be very valuable and the tax savings substantial.
If you wish to read more about Creative Sector Tax Relief read our publication.
