Consultation – tax reliefs for the animation, high-end television and video games industries
Date: Friday 27th July, 2012
Author: Cathy Corns
Profile: Cathy Corns
The Government plans to introduce the above reliefs from April 2013. A consultation document on the proposed new tax reliefs has been published for comment.
The proposal is to introduce targeted tax reliefs based on the existing film tax relief model. Slightly different rules are proposed for each of the three creative sectors and amounts of relief will depend on the level of ‘core expenditure’ but the relief is likely to be an additional deduction from profits and the ability to surrender losses for a payable tax credit.
The definition of ‘core expenditure’ will be finalised after the consultation. However, the Government expects that the types of expenditure allowable will be broadly similar to a definition of core expenditure for film tax relief, i.e. expenditure directly incurred in the production excluding the costs of financing, advertising, etc. The qualifying core expenditure is proposed to include all production costs that are integral to the production process itself, including relevant pre- and post- production costs.
Keywords: tax reliefs,creative sector,animation,video games,television
Please note that the opinions expressed in this blog represent the views of the author and not the views of Mercer & Hole.