What Is Creative Tax Reliefs?
Creative Industry Tax Reliefs are a group of corporation tax reliefs that allow qualifying companies to claim an additional deduction.
How does it work?
There are eight creative industry tax reliefs available to eligible businesses. Whether you are eligible to make a claim, depends on your activities and involvement in relevant creative projects.
The reliefs increase the amount of core expenditure you can claim, saving your business corporation tax. However instead, it can increase a loss or result in a tax credit of up to 25% of the loss being paid back to you if your business is currently making a loss.
Companies can get back up to £45 back for every £100 spent on a creative project!
Who Can Claim?
Limited companies carrying out qualifying creative projects can claim.
So, lets look at it. What is a qualifying creative project?
To make a claim, your business must be directly involved in the production and development of one or more of the following areas and have responsibility throughout development - from start of pre-production to completion.
Films Tax Relief (FTR)
Film Tax Relief commenced on the 1st January 2007. It is available to film production companies within the charge to Corporation Tax.
Subject to the production company and the film meeting the qualifying conditions as set out in the legislation in Finance Act 2006 and subsequent amendments.
High-end Television Tax Relief (HTR)
High-End Television Tax Relief commenced on the 1st April 2013. It was introduced to the Finance Act 2013 to encourage high-end television production in the UK.
Children’s Television Tax Relief (CTR)
Children’s Television Tax Relief commenced on the 1st April 2015. It was introduced to the Finance Act 2015. It is actually an extension of High-End Television Tax Relief but is specifically for the producers of children’s television programmes.
Animation Television Tax Relief (ATR)
Animation Television Tax Relief commenced on the 1st April 2013. It is available to animation production company within the charge to Corporation Tax.
Subject to the production company and the film meeting the qualifying conditions as set out in the legislation in Finance Act 2013 and subsequent amendments.
Video Games Tax Relief (VGTR)
Video Games Tax Relief commenced on the 1st April 2014 and is available to video games production companies within the charge to Corporation Tax.
Subject to the company and the video game production meeting the qualifying conditions as set in the legislation in Finance Act 2013 and Finance Act 2014.
Theatrical Productions Tax Relief (TTR)
Theatrical Productions Tax Relief was introduced on the 1stSeptember 2014. It can be claimed by companies that produce qualifying productions.
This relief is processed through the Corporation Tax system. It is available to incorporated companies, commercial and charitable, that produce qualifying theatrical productions.
Orchestra Tax Relief (OTR)
Orchestra Tax Relief was introduced to support and encourage the creation of orchestral concerts. It commenced on the 1st April 2016. It can be claimed by companies and orchestral productions meeting the qualifying conditions which are set out in the Finance Act 2016.
Museums and Galleries Exhibition Tax Relief (MGETR)
Museums and Galleries Exhibition Tax Relief was introduced on 1st April 2017.
It is available in respect of newly developed temporary and permanent exhibitions produced by:
Trading Subsidiaries of charitable companies
Companies owned by local authorities.
What Costs Can Be Claimed?
The costs that you can claim vary depending on the type of relief. The do include:
· People Costs
· Material Costs
· Other Specific Costs by Relief
Making Your Claim
1. To start your claim, first we will need to book in a 15-minute call with one of our specialists to determine if you are eligible.
2. Next, we will schedule a consultation call. We will gather the necessary information to calculate the claim size and produce the report ready for HMRC.
3. Once we have confirmed the scope of your refund, our team will process your claim in the shortest possible timeframe.
Think You Might Be Eligible?
Call one of our consultants and we’ll have a chat about business and whether there is scope to make a claim.