Rising Tax Relief Claims in the Creative Industries

From ground-breaking films to awe-inspiring museums, it’s safe to say that Britain is a trailblazer when it comes to creativity. The UK creative industry has been at the forefront of both national and international culture for a long time, and its contribution to the UK economy is vast.

What is Creative Industry Tax Relief?

Creative Industry tax relief was introduced back in 2007, to promote productions and exhibitions which may have otherwise been developed outside the UK. The idea behind the relief was that by providing a compelling tax incentive, investment in UK productions would be far more attractive.

The relief offers a valuable opportunity, with companies and charities being able reclaim up to 25 per cent of qualifying expenditure. The relief is split into 8 different sub-sectors, giving qualifying organisations an opportunity to claim a proportion of their production costs back. Since being introduced, the scheme has helped the creation of a vast number of video games, exhibitions, films and TV shows, such as Game of Thrones.

Claims on the Rise

In 2018-19, £1.1 billion was paid out through the initiative – an impressive 22 per cent increase from the previous year and the highest year to date. The initiative is helping our well-established cultural sector in the UK grow further, whilst boosting the British economy and creating jobs. T

he film industry has benefitted the most from the initiative, receiving £3.3bn since 2007, across 2955 films. However, the amount of claims in other sectors is significantly less. Museums and Galleries, for example, have only made 50 claims since being introduced to the scheme in 2017.

Whilst it’s amazing to see so many taking advantage of the relief, it is clear there is still vast numbers missing out and many are failing to fully maximise their claim. We encourage those in creative sector to consider the scheme whenever possible, to unlock valuable cash flows and enable further investment in new ideas.

How can we help?

We have a creative tax team on hand to help support your claim. If you’re in the creative sector and you’re unsure if you’re eligible, get in touch to find out how we can help.