Creative industry tax reliefs (CITR) are the collection of eight Corporation Tax reliefs that support qualifying creative agencies and companies to demand a larger deduction or in certain cases claim a payable tax credit during the calculation of their taxable profits.
These Creative Industry Tax reliefs are:
Film Tax Relief (FTR)
Animation Tax Relief (ATR)
High-end Television Tax Relief (HTR)
Children's Television Tax Relief (CTR)
Video Games Tax Relief (VGTR)
Theatre Tax Relief (TTR)
Orchestra Tax Relief (OTR)
Museums and Galleries Exhibition Tax Relief (MGETR)
These Creative Industry Tax reliefs work by extending the cost of allowable expense. Where your company makes a loss, you may be able to 'surrender' the loss and convert some or all of it into a payable tax credit.
Qualifying for creative industry tax reliefs
To qualify for creative industry tax reliefs, your creative agency or company must be responsible for Corporation Tax and directly involved in the production and development of:
certain films
high-end and children’s television programmes
animation programmes
video games
theatrical productions
orchestral concerts
museum or gallery exhibitions
If you produce television programmes, films, video games, or animations you need to pass a cultural test or qualify by an internationally recognised co-production treaty. Formal certification for the production of a British programme, game or film is required to qualify.
The British Film Institute endeavours more supervision on the cultural test, qualification and certification.
A professional team within HMRC deals with most creative industries tax reliefs claims. You can post any of your inquiries about claiming the reliefs to the Creative Industry team.
Find detailed guidance on the creative industry tax reliefs contact DNS Accountants in Barking.