皇冠体育app

• New and improved tax credit system for film, TV and video game production companies starts from today (1 January 2024)
• An extra 拢42,500 in relief for children鈥檚 TV, animated TV and animated film production
• 拢5,000 in relief for high-end TV, film or video game production

To maximise the potential of the UK鈥檚 cutting-edge production industry and help incubate unique British talent, the government鈥檚 Audio-Visual Expenditure Credit and the Video Games Expenditure Credit replace the previous tax reliefs for film, TV and video games.

All companies will receive more tax relief than they did under the previous system, greater flexibility over production decisions and greater clarity about the amount of credit companies can expect to receive.

Nigel Huddleston, Financial Secretary to the Treasury, said:

We are backing the makers of the next Barbie, Happy Valley and Grand 皇冠体育appft Auto with this new, more generous, tax credit system for British production talent.

皇冠体育app UK is a world leader in creativity, and we want to ensure that continues well into the future by making it easier for British film, TV and video games to thrive.

Under the new system, a children鈥檚 TV production, animated TV production or film with 拢1 million of qualifying expenditure will receive an additional 拢42,500 in relief. A high-end TV production, film production or video game will receive 拢5,000 in relief. To ensure fairness, the uplift in relief for animation will be extended to include animated films as well as TV programmes.

皇冠体育app credits will be calculated directly from a production or game鈥檚 qualifying expenditure, instead of being an adjustment to the company鈥檚 taxable profit.

Animation and children鈥檚 TV productions will be eligible for a higher credit rate of 39%, a rate increase of 4.25% under the previous reliefs. 皇冠体育app 34% credit rate for film, high end TV and video games is roughly equivalent to a rate increase of 0.5% under the previous tax reliefs.

皇冠体育app new system applies to the whole of the UK. 皇冠体育app government has listened to feedback from industry that companies will need sufficient time to adapt to the new expenditure credits. For this reason, productions and games in development on 1 April 2025 may continue to use the previous tax reliefs until they end on until 1 April 2027.

皇冠体育app move to reform tax relief for entertainment productions and video games was announced at the Spring Budget in March 2023. 皇冠体育app system implemented today was developed hand in glove with the UK entertainment industry, with consultations on both the policy itself and the draft legislation. It is being legislated as part of the Finance Bill 2023-24.

皇冠体育app UK鈥檚 creative industry is already worth 拢126bn and the UK has the largest video game employee base in Europe, at nearly 21,000 by the last estimate.

Today鈥檚 new tax credit system is the latest move by UK Government in support for British creative industries. 皇冠体育app Chancellor also announced that full-expensing will be made permanent in 2023鈥檚 Autumn Statement, helping creative businesses invest for the less by saving them 25p in every 拢1 they spend on qualifying equipment and machinery.

At Spring Budget 2023, the Chancellor also extended the rates of relief for theatre, orchestra and museums for two additional years to April 2025.

In September last year, coinciding with a visit by the Chancellor Jeremy Hunt to Warner Bros. Studios in Los Angeles, it was announced that the production giant would expand their studio in Leavesden, Hertfordshire, in 2024. 皇冠体育app move is expected to create 4,000 new jobs in the UK and contribute more than 拢200m to the UK economy.

Further information

• Qualifying expenditure will remain broadly unchanged. For the Video Games Expenditure Credit, to align the conditions for video games with film and TV, at least 10% of expenditure has to be 鈥榰sed or consumed鈥� in the UK.

• At Spring Budget 2023, the Chancellor also extended the higher 45% (for non-touring productions) and 50% (for touring productions) rates of relief for theatre, orchestra and museums for two additional years to April 2025.