If you operate a business within the creative sector, you might be able to access substantial tax incentives offered by the Government. These incentives are designed to promote the UK’s ambition to become Europe’s hub for technology by encouraging growth in the digital, creative, and other high-tech fields.
To be eligible for the creative industry tax incentives, your business must meet the following criteria:
- Be subject to Corporation Tax.
- Play a central role in the decision-making, production, and development processes (from inception to completion) of:
- Films
- Premium, animated, and children’s TV shows
- Video games
- Stage shows and orchestral performances
- Museum and gallery displays
In some cases, to qualify for tax incentives, the final product must pass a cultural test to obtain a certification from the British Film Institute (BFI).
Companies engaged in creating live-action films, TV shows, and video games can receive up to 20 per cent of the main production expenses back as corporate tax incentives.
Similarly, theatre and orchestra productions, as well as museums and galleries, can claim up to 25 per cent of the primary production costs.
Animated productions and films are also eligible to reclaim up to 25 per cent of the costs incurred during pre-production, main photography, and post-production phases as a tax rebate.