Corporation Tax relief will be made available to the animation, high end TV and video games industries from 1 April 2013, meaning that companies will be able to claim a payable tax credit from HM Revenue & Customs against production costs.
The tax relief, known as ‘Creative Industry Tax Credits’ closely follows the existing film tax relief, which was introduced in 2007. As for the film industry tax credits, the creative industry tax credits need state aid approval and the government has submitted State aid notifications for each relief on the basis of a cultural test. If this is granted, the legislation will be included in the Finance Act 2013, subject to it receiving Parliamentary assent in summer 2013.
The definition of high-end TV includes dramas, comedies and documentaries with a budget of more than £1m per hour.
HMRC have set up a Creative Industries Team, based in Manchester, which from 1 April 2013 will, accept claims for the reliefs , assess these claims subject to State aid approval and provide tax credit advice to companies and their representatives within these industries who may be able to claim.
For more information contact NEIL LONDRAGAN on 0161 703 2500 or e-mail firstname.lastname@example.org