Let’s face it, we’ve all been watching A LOT of TV over the past year!
With an ever-increasing demand for content in a growing market, production companies have been tangling with stringent Covid-19 safety restrictions to create new programmes and series, to fill the gaps in our schedules and provide content for streaming platforms. Adapting to ‘the new normal’ of filming during Covid-19 has raised production costs, but fortunately there are already three government schemes that enable tax relief on certain types of TV projects.
These schemes are part of the Creative industry tax reliefs – a group of 8 Corporation Tax reliefs that allow qualifying companies to increase their amount of allowable expenditure. This can reduce the amount of Corporation Tax the company needs to pay, or in the case of a loss, may allow them to convert some or all of this loss into a payable tax credit.
High End Television Tax Relief
High-end Television Tax Relief can be claimed on a drama, comedy or documentary programme if:
- it is intended for broadcast to the general public – this includes streaming online
- at least 10% of the total core costs relate to activities in the UK
- the average core expenditure is at least £1 million per hour of slot length
- the slot length in relation to the programme must be greater than 30 minutes
Animation Tax Relief
Animation Tax Relief can be claimed on an animation programme if:
- it is intended for broadcast – this includes streaming online
- at least 51% of the core expenditure is on animation
- at least 10% of the core costs relate to activities in the UK
- the company claiming the relief is responsible for pre-production, principal photography, post-production, and delivery of the completed programme
Children’s Television Tax Relief
Children’s Television Tax Relief is an extension of high-end television and animation relief but is specifically for the producers of children’s television programmes. It can be claimed if:
- the programme is intended for broadcast – this includes streaming online
- the primary audience for the programme is expected to be under the age of 15
- at least 10% of the core costs relate to activities in the UK
- the company claiming the relief is responsible for pre-production, principal photography, post-production, and delivery of the completed programme
Unlike the other forms of TV tax relief, quizzes, game shows, and other programmes including an element of competition or contest may qualify if the prize total does not exceed £1,000.
In order to claim one of the three types of TV tax relief, your company must be actively engaged in planning & decision making, including directly negotiating, contracting, and paying for rights, goods and services. Your programme must also pass a ‘cultural test’ or qualify through an internationally agreed co-production treaty, to be certified as British by the British Film Institute (BFI).
If you qualify, you can claim 80% of core expenditure, or the total amount of UK core expenditure, against your Corporation Tax, whichever is the lower amount. Core expenditure is expenditure on pre-production, principal photography and post-production. If you make a loss, you can surrender some or all of it for a payable tax credit at 25%.
You can make your claim on your company tax return and may make, amend or withdraw a claim up to one year after the company’s filing date.
