Home 5 Corporation Tax 5 New tax credits for film, TV and game makers

New tax credits for film, TV and game makers

11 January 2024

Effective from January 1, 2024, the creative sectors witness tax credit reforms, offering increased relief for qualifying productions. Animation, children's TV, and films benefit, and credits are now calculated directly from qualifying expenditure. Extension and higher rates provided, supporting adaptation until 2027.

From January 1, 2024, the creative sectors have seen several reforms to tax credits. Under the revamped system, productions such as children’s TV, animated TV, or films incurring £1 million of qualifying expenditure will receive an additional £42,500 in relief. High-end TV production, film production, or video games will receive £5,000 in relief. The extension of the uplift in relief for animation now includes both animated films and TV programs.

Credits will now be calculated directly from a production or game’s qualifying expenditure. This is rather than it being an adjustment to the company’s taxable profit.

Animation and children’s TV productions qualify for a higher credit rate of 39%, reflecting a rate increase of 4.25%. The 34% credit rate for film, high-end TV, and video games is roughly equivalent to a rate increase of 0.5%.

Companies developing productions and games as of April 1, 2025, may continue to utilize the previous tax reliefs until their conclusion or until April 1, 2027, providing them with additional time to adapt to the new expenditure credits.

Additionally, as part of the Spring Budget 2023 measures, authorities extended the temporary higher rates for Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR), and Museums and Galleries Exhibitions Tax Relief (MGETR) for an additional two years until April 1, 2025.

Source: HM Treasury Tue, 09 Jan 2024 00:00:00 +0100

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