Animation Tax Relief

Animation Tax Relief is available for Animation programmes that qualify as an official co-production, are intended for broadcast, or pass the cultural test.

Tax Relief For The Animation Industry

The aim of the scheme is to encourage and support the Animation industry, boosting employment and innovation, and to continue the UK’s proud heritage in producing world-acclaimed creative material. It was added to stimulate more internationally recognized animation and high-class television programming and provides money to reinvest in using technology to create animated films for broadcast. 

Just 15 completed Animations claimed Creative Industry Tax Relief in 2017-2018, and £13 million of Animation Tax Relief was paid to 75 claims. Since 2013 when the Relief was introduced, £44 million has been paid out to 230 claims. 

You can make, amend, or withdraw a claim for creative industry tax reliefs up to one year after the company’s filing date. 

The Company

How do I Qualify For Tax Relief?

There are certain criteria that need to be met to ensure that a company is eligible to claim Creative Industry Tax Relief, which are:

Tax Relief For The Animation Industry

The aim for the scheme is to encourage and support the Animation industry, boosting employment and innovation, and to continue the UK’s proud heritage in producing world-acclaimed creative material. It was added to stimulate more internationally recognized animation and high-class television programming and provides money to reinvest in using technology to create animated films for broadcast. 

Just 15 completed Animations claimed Creative Industry Tax Relief in 2017-2018, and £13 million of Animation Tax Relief was paid to 75 claims. Since 2013 when the Relief was introduced, £44 million has been paid out to 230 claims. 

You can make, amend, or withdraw a claim for creative industry tax reliefs up to one year after the company’s filing date. 

Qualification Icons-01

Qualification 1

01

The company is responsible for pre-production, principal photography, post-production, and delivery of the completed programme. 

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Qualification 2

02

The company is actively engaged in planning and decision making throughout the course of the programme.

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Qualification 3

03

The company is responsible for directly negotiating contracts, and pays for rights, goods, and services for the programme.

What Doesn't Qualify?

  • An Advertisement or Promotional programme
  • News, current affairs or discussion programme
  • A quiz, game show, panel show, variety show or similar programme
  • Competition or contest shows
  • Broadcasts live events such as theatrical and artistic performances
  • It's made for training purposes

 

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The Project

How do I Qualify For Tax Relief?

The project itself will need to be certified as British, by passing a cultural test or as an official co-production. There are 10 bi-lateral co-production treaties and some of these treaties will allow television co-production.

In terms of qualifying projects, there is also criteria that makes them eligible, which are:

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Qualification 1

01

Qualifies as British by either passing an Animation cultural test or qualifies as an official co-production with treaty partners that allow for television.

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Qualification 2

02

The programme is intended for broadcast which includes the internet.

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Qualification 3

03

At least 51% of the total core expenditure is on animation for the programme.

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Qualification 4

04

At least 10% of the core expenditure is UK expenditure.

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Qualification 5

05

Must be made by an animation production company that pays UK Corporation Tax.

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Qualification 6

06

It is not one of the excluded programmes.

What Costs Qualify for Animation Tax Relief?

To qualify for Creative Industry Tax Relief, you must have spent money on qualifying costs. It is important to note that you will not be able to claim for costs such as development, distribution, and other non-production related activity. 

Pre-production

Principal photography

Post-production

Green Jellyfish Creative Industries Tax Relief

Making A Claim

What Documentation Will I Need?

To make a claim, you will need to do this through the Company Tax system which means that the claim must be made in a Company Tax Return or an amendment to a Company Tax Return. This will require the following documents:

You may be eligible to receive up to 25% of your core expenditure for your animation programme as a cashback from the relief programme. 

An example would be that if your programme cost £100,000 to make, HMRC could reward you with a tax relief cheque for £25,000.

To find out more about Green jellyfish’s Creative Industry Tax Relief service for Animation, contact us today.