Audio visual tax reliefs consultation

The measure

The government has released a consultation on a series of proposals to further incentivise the production of culturally British content and support the growth of the audio-visual sectors by way of audio-visual tax reliefs. The consultation seeks to build upon the success of various creative industry tax reliefs, covering film, animation, high-end TV, children’s TV and video games. The aim of the consultation is to ensure that these highly skilled industries continue to thrive and boost growth in the UK whilst remaining fiscally sustainable.

In this consultation, audio-visual tax reliefs refers to: film tax relief, animation tax relief, high-end TV tax relief, children’s TV tax relief and video games tax relief. The proposals include simplifying the film and TV reliefs by merging them into one tax credit scheme. The consultation is not focussed on the other creative reliefs for theatres, orchestras, museums and galleries, but the government has stated that it may undertake a more detailed review of these reliefs in due course.

Who will be affected?

Companies operating in the audio-visual sector.

When will the measure come into effect?

The government expects reforms to be implemented in spring 2024, with the timing to be confirmed after the consultation has ended (9 February 2023).