Creative Industry Reliefs

The UK government offers a suite of creative industry tax reliefs designed to support the production of culturally British film, television, animation, video games, theatre, orchestra performances, and children's programmes. These reliefs are structured as additional deductions (enhanced expenditure) or payable tax credits calculated on a proportion of the company's qualifying creative expenditure. They are available to companies within the charge to Corporation Tax and are claimed through the CT600 return. This guide covers each relief, the qualifying conditions, and the interaction with other support.

Film Tax Relief (FTR)

Film tax relief provides 80% enhanced deduction on qualifying expenditure (for films with a budget of £15 million or less) or 80% enhanced deduction for films over £15 million (the "80/100" structure). This means that for every £100 of qualifying UK core expenditure, the company can deduct £180 when calculating taxable profits. If this creates a loss, the loss can be surrendered for a payable tax credit of 34% for films under £15 million budget, or 36% for films over £15 million. To qualify, the film must pass the cultural test set by the British Film Institute (BFI), which awards points for British setting, characters, language, and creative personnel. The film must be intended for theatrical release and must have at least 10% of its total production budget allocated to UK core expenditure.

High-End Television Tax Relief (HTR)

High-end TV (HETV) relief provides 80% enhanced deduction on qualifying UK core expenditure, with a payable tax credit of 34%. To qualify, the programme must be intended for broadcast, pass the BFI cultural test, have a minimum core expenditure of £1 million per hour of slot length, and be at least 30 minutes in length. Documentaries, game shows, and talk shows are excluded. The per-hour expenditure condition is a significant hurdle — many productions that look like HETV may not meet the cost threshold and must instead use film relief or the standard rules. Serial dramas and prestige documentaries often qualify.

Animation Tax Relief (ATR) and Children's TV Tax Relief (CTR)

Animation tax relief provides the same 80% enhanced deduction and 34% payable credit as HETV, but for animated productions that pass the BFI cultural test and have at least 51% of the animation work done in the UK. There is no per-hour expenditure minimum for animation, making it accessible to a wider range of productions. Children's television tax relief mirrors the HETV structure but is for programmes made primarily for children under 15. The programme must pass a specific cultural test and meet the minimum 30-minute slot length. All of these reliefs require the production company to be within the charge to UK Corporation Tax.

Video Games Tax Relief (VGTR)

Video games relief provides 80% enhanced deduction on qualifying expenditure, with a payable tax credit of 34%. To qualify, the game must be intended for supply to the general public, must pass the BFI cultural test (demonstrating British cultural content), must have at least 25% of its core expenditure incurred in the UK or European Economic Area, and must not be created for advertising or promotional purposes. The cultural test for video games awards points based on the game's setting, characters, narrative, language, and the nationality of the creative team. Games with educational content may also qualify.

Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR), and Museum and Gallery Exhibition Tax Relief

Theatre tax relief provides up to 80% enhanced deduction and a 34% payable credit for touring theatrical productions, and 40% enhanced deduction (34% payable credit) for non-touring productions. A touring production must have at least 14 performances in at least two different locations. Orchestra tax relief provides 40% enhanced deduction (36% payable credit) for concert performances by a professional orchestra of 12 or more musicians. Museum and gallery exhibition tax relief provides up to 40% enhanced deduction (36% payable credit) for temporary exhibitions at qualifying museums and galleries. All of these require the production company to be within the charge to UK Corporation Tax and to meet specific cultural criteria.

Cultural Tests and Compliance

All creative industry reliefs require the production to pass a cultural test administered by the BFI (for film, TV, animation, and video games) or by the DCMS for theatre and orchestra. The test awards points on a sliding scale — to pass, you need a minimum points threshold (typically 16 out of 31 for film, 18 out of 35 for HETV). Claims are made through the CT600 and must be accompanied by a certification from the relevant authority. Without certification, the relief cannot be claimed. Claims must be submitted within two years of the end of the accounting period, and HMRC can open enquiries into creative industry relief claims, just as with R&D tax relief.

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