Creative Industry Tax Relief (CITR) allows qualifying companies to claim an enhanced deduction for certain production costs – or in many cases, a payable tax credit from HMRC – when calculating their taxable profits.
Our specialist CITR team has extensive industry-leading experience handling CITR claims across all creative sub-sectors. We were responsible for the very first successful claims submitted to HMRC in respect of Animation Tax Relief (ATR), Theatre Tax Relief (TTR) and Orchestra Tax Relief (OTR).
Film Tax Relief (FTR) or Film Tax Credits (FTC) were introduced in April 2007 by the Government. They have been the main driver for inward investment and led to a boom in the British Film Industry.
For a film to qualify for FTR/FTC it must:
- pass the BFI cultural test or be an official international co-production
- be intended for theatrical release; and
- have at least 10% of its total production costs relating to activities in the UK.
Here at Nyman Libson Paul we have handled FTR claims for films and production companies of all shapes and sizes and we are experts in the field.
Following the successful implementation of Film Tax Relief (FTR) in 2007, High-end Television Tax Relief (HTR) was introduced in April 2013, alongside Animation Tax Relief (ATR)
With the Film/TV industry shifting content, talent and finance from the big screen to big budget TV series, we are handling more and more HTR claims.
Our industry expertise and significant experience is key to not only processing and claiming the tax relief, but in enabling you to run a successful production.
To be entitled to claim HTR, the project must:
- pass the BFI cultural test (similar to that for FTR) or be an official international co-production
- be intended for broadcast
- be a drama, comedy or documentary
- have at least 10% of the total production costs relating to activities in the UK
- have an average qualifying production cost per of not less than £1million per hour for each hour of production length; and
- have a programme slot length of greater than 30 minutes
The government introduced Animation Tax Relief (ATR) in April 2013 after the success of Film Tax Relief.
We have successfully completed several film and TV tax credit claims and completed the first ever successful Animation Tax Relief claim in the UK.
Not only do we understand the process of claiming the relief, but our experts have industry knowledge in the structuring of animation companies, enabling your project to run smoothly.
Your company will be entitled to claim ATR on an animation programme if:
- the programme passes the BFI cultural test (similar to that for FTR) or be an official international co-production
- the programme is intended for broadcast
- at least 51% of the total core expenditure is on animation; and
- at least 10% of the total production costs relate to activities in the UK.
Creative Industry Tax Relief was extended to include the video games industry in April 2014.
Video Games Tax Relief (VGTR) applies to UK registered companies and operates in a similar manner to existing UK Film Tax Relief. Please note that gambling games are specifically excluded from this relief.
Your company will be entitled to claim VGTR on a Video Game if:
- the game passes the BFI cultural test.
- the game is intended for supply to the general public.
- the game is not made for advertising or promotional purposes.
- At least 25% of the core expenditure is incurred on goods and services within the European Economic Area (EEA).
Theatre Tax Relief officially came into force on Monday 1 September 2014 – a watershed moment for the UK Theatre Industry.
As leading UK theatre accountants and experts in Creative Industry Tax Relief claims, we are well placed to advise and guide productions on claiming TTR.
A production qualifies if:
- it is a dramatic production or ballet
- actors, singers, dancers etc give their performances wholly or mainly through the playing of roles;
- each performance is to be performed live, in front of an audience or for educational purposes;
- it may include a show performed by a circus (but not involving wild animals); and
- at least 25% of Core Expenditure is spent in the EEA
Orchestra Tax Relief (OTR) was introduced in April 2016 to promote orchestral concerts in the UK. The scheme allows orchestral productions to either decrease their taxable profits or receive cash payments from the government.
A production can qualify for OTR if:
- it includes at least 12 instrumentalists;
- the majority of instruments are not to be electronically or directly amplified;
- its primary purpose is a performance to the paying public, or for education; and
- a minimum 25% of core expenditure is to be spent within the European Economic Area (EEA).
Concerts intended for promotional purposes, competitions or contests, or making a recording are excluded.
Museums and Galleries Exhibition Tax Relief (MGETR) was introduced in April 2017. The scheme allows qualifying exhibitions to receive cash payments from the government.
Applicants must be a charitable company or local authority which maintains a museum.
An exhibition does not qualify for MGETR if:
- it is organised in connection with a competition;
- the purpose of (or one of the main purposes) of the exhibition is the sale of anything on display;
- it involves a live performance by any person, except where it is an incidental part of the exhibition; or
- it involves the display of anything that is alive.
There are other complex rules which need to be adhered to in order to claim this tax credit. Please contact us for further guidance.
Download our CITR Fact Sheets
To find out more about Creative Industry Tax Relief, download our Fact Sheets using the link below:
If you would like advice on how best to take advantage of Orchestra Tax Relief, please do not hesitate to contact us.
Creative Industry Tax Relief (CITR) supports projects and productions across the British creative industries with a view to promoting culturally relevant productions in the UK and incentivising investment in UK productions that would otherwise take place overseas. All productions, other than theatre, orchestra or museums, must be certified by the Department for Culture, Media & Sport (DCMS) as culturally British to be eligible for relief.
The Government’s initial focus was on the film industry, with the introduction of Film Tax Relief (FTR) in 2007. However, the relief has expanded to encompass Animation Tax Relief (ATR), High-End Television Tax Relief (HTR), Video Games Tax Relief (VGTR), Theatre Tax Relief (TTR), Children’s Television Tax Relief (CTTR), Orchestra Tax Relief (OTR) and Museum and Gallery Exhibition Tax Relief (MGETR).