Good news for the UK high end TV, animation and games industries as the rate of the payable production tax credit is set at 25% of qualifying spend (being the higher rate of film tax credit relief available for low budget films). Alternatively companies can choose to utilise an enhanced deduction of 100% of qualifying spend against corporation tax profits.
This is the best result we could have hoped for and should make a real difference.
Additional good news for the creative sector is the Government’s announcement that it will match fund voluntary industry contributions of up to £6 million over the next two years to the existing Skills Investment Fund administered by Creative Skillset, expanding its scope to include support for skills provision in the film, television, animation and video games sectors. Critical to the success of any creative industry tax relief is producing and maintaing talent in the UK.