Creative sector reliefs
The UK government has been boosting the creative industries for some years with generous corporation tax reliefs and credits for certain activities. Qualifying companies (including charities in the case of cultural reliefs) can reduce their corporation tax liability or receive tax credits on eligible expenditure through eight creative sector tax reliefs.
These reliefs are grouped together and often referred to as the audio visual reliefs and the cultural reliefs:
Audio visual reliefs: video games tax relief, film tax relief, high-end television tax relief, animation tax relief and children’s television.
Cultural reliefs: theatre tax relief, orchestra tax relief and museums and galleries exhibition tax relief.
Companies wishing to make a claim must be directly responsible for and actively engaged in producing the relevant game, production or exhibition. You may be able to maximise your company’s claims with enhanced tax reliefs and receive cash from HMRC in the form of payable credits.
We have assisted video game developers and film/TV production companies through what can be a complex process. We’ve also worked with arts organisations, theatres, museums, galleries and local authorities to help them access these valuable reliefs. If you haven’t already considered whether this relief applies to your business or organisation, it’s worthwhile doing so now.
The following creative sectors are eligible for relief:
- Audio visual reliefs
- Cultural reliefs
Audio visual reliefs
Video games tax relief
Companies producing video games can claim an additional tax deduction in respect of costs incurred on designing, producing and testing a qualifying game, and where the production is making a loss, there’s scope to claim cash credits. The benefit could be worth up to 20% of qualifying production spend.
Film tax relief
Film tax relief aims to stimulate investment and sustainable film production within the UK. Companies can claim an additional tax deduction in respect of costs incurred on producing a qualifying film, and where the production is making a loss, there’s scope to claim cash credits. The benefit could be worth up to 20% of qualifying production spend.
High-end television tax relief, animation tax relief and children’s television relief
These reliefs aim to stimulate investment in culturally relevant television productions in the UK, across the spectrum of high-end dramas, animations and children’s television programmes. Companies can claim an additional tax deduction in respect of costs incurred on producing an eligible programme, and where the production is making a loss, there’s scope to claim cash credits. The benefit could be worth up to 20% of qualifying production spend.
To find out more about qualifying expenditure and eligibility, contact the team below.
Cultural reliefs
Theatre tax relief
Theatre tax relief was established to support theatrical production companies. The relief is aimed at plays, operas, musicals or other dramatic pieces that tell a story, including ballet.
For loss-making productions the existing benefit arising from a claim was already a generous amount of 16% of qualifying spend (non-touring) or 20% (for touring productions), however this was temporarily increased for productions beginning on or after 27 October 2021 to 36% for non-touring productions and 40% for touring productions.
Orchestra tax relief
Orchestra tax relief supports the production of live orchestral performances.
For loss-making productions the benefit arising from a claim was already a generous amount of 20% of qualifying spend, however this was temporarily increased for productions beginning on or after 27 October 2021 to 40%.
Museum and galleries exhibition tax relief
This relief supports companies and organisations in creating public facing exhibitions by helping them to recover some of their costs of producing the exhibition. The relief is often a fundamental resource for many arts and cultural organisations.
For loss-making exhibitions the benefit arising from a claim was already a generous amount of 16% of qualifying spend (non-touring) or 20% (for touring productions), however this was temporarily increased for exhibitions green-lit on or after 27 October 2021 to 36% for non-touring exhibitions and 40% for touring exhibitions. The enhanced rates are now in place to 1 April 2026, but taper down from 1 April 2025. The benefit per exhibition is capped at £80,000 for non-touring exhibitions and £100,000 for touring exhibitions.
To find out more about qualifying expenditure and eligibility, contact the team below.
Specialist advice
With in-depth experience in creative industry tax relief claims, we can help you decide whether a claim is feasible and guide you through the process. Our services include:
- advice on how the schemes work and how to access the benefits;
- eligibility assessment;
- preparing or reviewing claims;
- advice on the interaction with other reliefs; and
- dealing with HMRC queries.
For audio visual reliefs, we can also:
- assist with BFI applications; and
- provide auditor certification for final certificates.
For cultural claims, our support can also include:
- considering the use of a separate subsidiary company for productions;
- practical ad-hoc advice on specific issues such as eligibility of certain types of performances/exhibitions or costs; and
- concert series elections.
