Reform of audio-visual creative tax reliefs to expenditure credits
This measure is about the reform of the film, TV and video games tax reliefs to expenditure credits.
- Policy Paper Reform of audio-visual creative tax reliefs
- Bill Amendment Draft legislation (accessible version)
- Explanatory Note Explanatory note (accessible version)
This measure confirms that the audio-visual tax reliefs will be reformed to above-the-line expenditure credits, similar to the Research and Development Expenditure Credit.
The Audio-Visual Expenditure Credit will replace the:
- Film Tax Relief
- High-End TV Tax Relief
- Animation Tax Relief
- Children’s TV Tax Relief
The Video Games Expenditure Credit will replace the Video Games Tax Relief.
Film, high-end TV and video games will be eligible for a credit rate of 34%. Animated film and TV and children’s TV will be eligible for an uplifted rate of 39%.
The expenditure credits will be available to claim from 1 January 2024. New productions must claim under the new expenditure credits from 1 April 2025 and all productions must claim under the expenditure credits from 1 April 2027 when the current tax reliefs will end.