Creative Sector Tax Reliefs

New reliefs for the video games, animation and high-end television industries were confirmed in the 2013 Finance Act. Animation tax relief and high-end television tax relief commenced on 1 April 2013. Video games tax relief was finally given State aid approval by the EU in March 2014, meaning that it came into effect from 1 April 2014.

The reliefs allow 100% additional tax deduction on qualifying expenditure, or an effective payable tax credit of 25% of qualifying expenditure.

MMP has worked with TIGA, the video game trade association, on research to justify the cost/benefit analysis for the VGTR scheme. We were delighted that TIGAs long campaign to get VGTR relief introduced finally paid off in March 2014 with the announcement of EU State aid approval for the UK scheme.

All relevant films, television programmes, animations or video games must pass a 'cultural test' to ensure the production is a 'European film', 'European programme' or 'European video game'. Alternatively it must be set in an undetermined location (outer space etc.) Certification and qualification for the cultural test is administered by the British Film Institute (BFI) on behalf of the Department for Culture, Media and Sport.

MMP consult on this and all aspects of submitting and claiming for Games Tax Relief

Detailed guidance on the scheme was published by HMRC in January 2015

Video Games Tax Relief & Animation Tax Relief

We are committed to providing excellent service, doing all the heavy lifting, delivering robust claims in the shortest timeframe possible.


Video Games Tax Relief

Video Games Tax Relief currently provides a benefit of up to 16% for taxpayers, or a payable tax credit (with a benefit up to 20%) for loss-making games.

With video game projects, and for tax purposes only, current legislation classifies the production of each as a separate trade, with start and end dates separate to those of the company.

The legislation also describes what income and expenditure is eligible for additional tax relief, and circumstances where there are exceptions to the normal rules. It further restricts the use of losses associated with that trade in certain circumstances.

Each scheme in the creative sector has its own cultural test. This is administered by the British Film Institute (BFI), on behalf of the Department for Culture, Media and Sport.

Once Creative Industry claims have been approved by the BFI for their cultural content, they’re evaluated for tax purposes by HMRC’s specialist incentives unit in Manchester.

Head over to our dedicated Video Games Tax Relief site for more details.

MMP's Video Games Tax Relief site

Animation Tax Relief

Animation Tax Relief currently provides a benefit of up to 16% for taxpayers, or a payable tax credit (with a benefit up to 20%) for loss-making animations.

With animation and video game projects, and for tax purposes only, current legislation classifies the production of each as a separate trade, with start and end dates separate to those of the company.

The legislation also describes what income and expenditure is eligible for additional tax relief, and circumstances where there are exceptions to the normal rules. It further restricts the use of losses associated with that trade in certain circumstances.


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Cultural tests

All relevant animations or video games must pass a 'cultural test' to ensure the production is a 'European animation' or 'European video game'. Alternatively it must be set in an undetermined location (outer space etc.) Certification and qualification for the cultural test is administered by the British Film Institute (BFI) on behalf of the Department for Culture, Media and Sport.

MMP prepare all the documentation for, and manage the relationship with, both the BFI and HMRC to ensure that both bodies are given all the information they need in the submission process to approve the claim

Detailed guidance on the scheme was published by HMRC in January 2015

Contact Us for more details