Claim creative industry tax reliefs

Creative industry tax reliefs overview

The UK offers generous Corporation Tax reliefs for British creative content production. These reliefs can significantly reduce your tax bill or provide cash repayments if you're loss-making.

From 1 April 2025, most creative reliefs transitioned to the Audio-Visual Expenditure Credit (AVEC) system - a simpler above-the-line payable credit calculated directly on UK expenditure.

Available reliefs

Film Tax Relief (AVEC): 34% credit (53% for independent films ≤£15m budget from 1 April 2025)
High-end TV Tax Relief (AVEC): 34% credit on qualifying UK expenditure
Animation Tax Relief (AVEC): 39% credit (higher rate reflecting animation costs)
Video Games Tax Relief: 25% enhancement on UK/EEA expenditure
Theatre Tax Relief: 45% enhancement (touring) or 40% (non-touring) from 1 April 2025
Orchestra Tax Relief: 45% for all orchestra productions from 1 April 2025
Museums and Galleries Exhibition Tax Relief: 45% enhancement (touring) or 40% (non-touring) from 1 April 2025

Film Tax Relief

Film Tax Relief supports British film production through a 34% credit (or 53% for independent films with budgets ≤£15m from 1 April 2025) on qualifying UK expenditure.

Film Tax Relief

Corporation Tax relief for British qualifying films - 25% enhancement (standard) or 80% enhancement (limited-budget ≤ £15m). Requires BFI cultural test pass (18/35 points) and minimum 10% UK spend.

Credit rate (from 1 April 2025): 34% Audio-Visual Expenditure Credit (AVEC) on qualifying UK expenditure
Credit type: Above-the-line payable tax credit (replaces old enhancement system)
Minimum UK spend: At least 10% of total core expenditure must be UK expenditure
Independent film bonus: 5% additional credit (39% total) for independent films with budget ≤£15m
Cultural test requirement: Must pass British Film Institute cultural test or qualify as official co-production
Cultural test pass mark: 18 out of 35 points
Claim deadline: Within 2 years of end of accounting period of completion

From 1 April 2025, Film Tax Relief has been replaced by the Audio-Visual Expenditure Credit (AVEC). This is a new 34% above-the-line payable tax credit on qualifying UK expenditure - a simpler system than the old enhancement model. Independent films (budget ≤£15m) receive 39% credit.

How AVEC works

AVEC is a payable credit calculated as 34% (or 39% for qualifying independent films) of qualifying UK expenditure. Unlike the old enhancement system, the credit is calculated directly on expenditure without complex Corporation Tax interactions. Companies claim the credit on their CT600 return.

Eligibility requirements

1. British qualifying film: Must pass BFI cultural test (18/35 points) or be certified as official co-production treaty film

2. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure

3. Intended for theatrical release: Film must be intended for cinema exhibition

4. Production company: Must be UK film production company responsible for pre-production, principal photography, and post-production

Apply for interim BFI certificate: Before filming starts, apply to BFI for interim cultural test certificate. This confirms provisional pass and protects tax position if cultural test rules change during production.
Track UK expenditure carefully: Maintain detailed records of all core expenditure, separating UK expenditure from non-UK. Must meet 10% minimum UK spend threshold.
Submit final BFI certificate application: After completion, apply for final BFI cultural test certificate with full details of cast, crew, locations, and post-production facilities used.
Claim relief on Corporation Tax return: Include Film Tax Relief claim on CT600 return within 2 years of end of accounting period when film completed. Use additional form CT600J.

Film Tax Relief guidance

Apply for BFI cultural test certificate

High-end Television Tax Relief

High-end TV relief supports drama, comedy, and documentary programmes costing at least £1 million per hour of slot length (broadcast time including ad breaks).

High-end Television Tax Relief

Corporation Tax relief for high-budget TV (drama, comedy, documentary) costing ≥ £1m per broadcast hour slot. 25% enhancement on UK expenditure. Requires BFI cultural test (18/35 points) and 10% minimum UK spend.

Credit rate (from 1 April 2025): 34% Audio-Visual Expenditure Credit (AVEC) on qualifying UK expenditure
Credit type: Above-the-line payable tax credit (replaces old enhancement system)
Minimum UK spend: At least 10% of total core expenditure must be UK expenditure
Minimum cost threshold: £1 million per hour of slot length (e.g., £500k for 30-min slot)
Slot length definition: Scheduled duration including advertising breaks (e.g., 60-min or 30-min slot)
Cultural test pass mark: 18 out of 35 points
Qualifying content: Drama, comedy, documentary (excludes news, advertising, competitions, training)
Claim deadline: Within 2 years of end of accounting period of completion

From 1 April 2025, High-end Television Tax Relief has been replaced by the Audio-Visual Expenditure Credit (AVEC) at 34% of qualifying UK expenditure. This is a simpler above-the-line payable credit replacing the old enhancement system.

Cost threshold calculation

Cost is measured against slot length (scheduled broadcast duration including ad breaks), not actual programme runtime. Example: A 48-minute drama in a 60-minute slot needs £1 million total core expenditure. A 22-minute comedy in a 30-minute slot needs £500,000.

Eligibility requirements

1. British qualifying programme: Pass BFI cultural test (18/35 points) or certified official co-production

2. Minimum budget: £1 million per hour of slot length

3. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure

4. Programme type: Drama, comedy, or documentary intended for broadcast (excludes news, advertising, competitions)

5. UK production company: Must be responsible for pre-production, principal photography, post-production

Calculate slot length threshold: Determine scheduled slot length (including ad breaks) and multiply by £1 million to find minimum budget requirement. A 60-minute slot requires £1m, a 30-minute slot requires £500k.
Apply for interim BFI certificate: Before production starts, submit interim cultural test application to BFI with script, production details, and provisional cast/crew information.
Track UK vs non-UK expenditure: Maintain detailed records separating UK core expenditure from non-UK. Must meet 10% minimum UK spend and document all qualifying costs.
Submit final BFI certificate: After completion, apply for final BFI cultural test certificate with actual cast, crew, locations, and facilities used.
Claim on CT600 return: Include High-end TV Tax Relief claim on Corporation Tax return using form CT600K within 2 years of accounting period end.

High-end Television Tax Relief guidance

Apply for BFI cultural test certificate

Animation Tax Relief

Animation receives a higher 39% credit rate (compared to 34% for film/TV) to support the UK animation industry. At least 51% of core expenditure must be spent on animation activities.

Animation Tax Relief

Corporation Tax relief for animation productions (films/TV) where ≥ 51% of core costs are animation. 25% enhancement (standard) or 80% (limited-budget ≤ £15m). Requires BFI cultural test and 10% UK spend.

Credit rate (from 1 April 2025): 39% Audio-Visual Expenditure Credit (AVEC) on qualifying UK expenditure
Credit type: Above-the-line payable tax credit (higher rate than film/TV at 34%)
Minimum UK spend: At least 10% of total core expenditure must be UK expenditure
Animation requirement: At least 51% of core expenditure must be on animation activities
Cultural test pass mark: 18 out of 35 points
Qualifying formats: Theatrical films, TV programmes (excludes advertising, training films)
Claim deadline: Within 2 years of end of accounting period of completion

From 1 April 2025, Animation Tax Relief has been replaced by the Audio-Visual Expenditure Credit (AVEC) at the higher rate of 39% of qualifying UK expenditure. Animation receives a higher rate than standard film/TV (34%) to reflect higher production costs and UK animation industry support.

Animation requirement

The key differentiator from Film or TV reliefs is the 51% animation expenditure requirement - more than half of core expenditure must be spent on animation activities (not live action) to qualify for the 39% animation rate.

Eligibility requirements

1. Animation threshold: At least 51% of core expenditure on animation activities (drawings, model-making, computer animation)

2. British qualifying: Pass BFI cultural test (18/35 points standard, 16/31 limited-budget) or official co-production

3. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure

4. Format: Theatrical film or TV programme intended for theatrical/broadcast (excludes ads, training)

5. Production company: UK company responsible for pre-production, principal photography, post-production

Calculate animation expenditure percentage: Total all core expenditure on animation activities (design, layout, key animation, in-betweening, model-making, CGI). Must exceed 51% of total core expenditure to qualify.
Determine if limited-budget: If total core expenditure ≤ £15 million, you qualify for 80% enhancement (15.2% credit) instead of 25% enhancement (4.75% credit). Budget carefully to maximize relief.
Apply for interim BFI certificate: Submit interim cultural test application to BFI before production. For limited-budget animations, lower pass mark applies (16/31 vs 18/35).
Track UK animation spend: Maintain detailed records of all animation expenditure, separating UK from non-UK. Must meet 10% minimum UK spend threshold across all core expenditure.
Claim on Corporation Tax return: Submit Animation Tax Relief claim on CT600 return using additional form CT600N within 2 years of accounting period end.

Animation Tax Relief guidance

Apply for BFI cultural test certificate

Video Games Tax Relief

Video games require 25% UK or EEA expenditure (higher than film/TV's 10% UK requirement), reflecting the European dimension of the games industry.

Video Games Expenditure Credit (VGEC)

Corporation Tax relief for video games development companies creating British qualifying games. 34% Video Games Expenditure Credit (VGEC) on UK spend from 1 April 2025. Requires BFI cultural test (18/35 points) and minimum 10% UK expenditure.

Credit rate (from 1 April 2025): 34% Video Games Expenditure Credit (VGEC) on qualifying UK expenditure
Credit type: Above-the-line payable tax credit (replaces old VGTR enhancement system)
Minimum UK spend: At least 10% of total core expenditure must be UK expenditure
Cultural test pass mark: 18 out of 35 points
Cultural test points: Content (16 max), Contribution (16 max), Cultural hubs (3 max)
Video game definition: Supplied as electronic data for entertainment, with progression or interaction
Excluded content: Advertising, gambling, training software (not entertainment video games)
Claim deadline: Within 2 years of end of accounting period of completion

From 1 April 2025, Video Games Tax Relief (VGTR) has been replaced by the Video Games Expenditure Credit (VGEC). This is a new 34% above-the-line payable tax credit on qualifying UK expenditure - a simpler system than the old enhancement model, matching the AVEC structure for film/TV.

Cultural test structure

Games must score 18/35 points across three categories: Content (max 16 points for British setting, characters, language), Contribution (max 16 points for British development team, production facilities), Cultural hubs (max 3 points for production in designated UK areas).

Eligibility requirements

1. Video game for entertainment: Electronic game supplied for entertainment purposes (excludes advertising, gambling, training software)

2. Cultural test pass: Score minimum 18 out of 35 points on BFI cultural test

3. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure (aligned with AVEC for film/TV from April 2025)

4. UK video games development company: Responsible for designing, producing, and testing the game

5. Game progression/interaction: Must involve progression through storyline or interaction beyond simple choices

Review cultural test points strategy: Plan how to accumulate 18/35 points. Content points (British setting, characters) and Contribution points (British team, UK facilities) are most controllable. Maximum 3 points available for production in designated cultural hubs.
Ensure 10% UK spend threshold: Track all core expenditure, separating UK costs from rest-of-world. From April 2025, VGEC requires minimum 10% UK expenditure (aligned with AVEC for film/TV). Plan development resources accordingly.
Apply for interim BFI certificate: Before development starts, submit interim cultural test application to BFI with game design document, planned development team locations, and anticipated cultural test points breakdown.
Document game completion: Maintain evidence of completion date - when game available for distribution to public. Tax relief claim timing depends on accounting period when game completed.
Submit final BFI certificate and claim: After completion, apply for final BFI certificate with actual development details. Claim VGEC on CT600 return within 2 years of accounting period end.

Video Games Expenditure Credit guidance

Apply for BFI cultural test certificate for video games

Theatre Tax Relief

Theatre productions receive enhanced relief, with touring productions (performing in 2+ venues, one ≤500 seats) receiving double the relief rate of non-touring productions.

Theatre Tax Relief

Corporation Tax relief for theatrical productions - 45% for touring (6+ premises, or 14+ performances across 2+ premises) or 40% for non-touring (from 1 April 2025). Requires 10% UK expenditure (from 1 April 2024). Covers drama, opera, musical, ballet, dance.

Tax relief rate - touring productions (from 1 April 2025): 45% of qualifying expenditure
Tax relief rate - non-touring productions (from 1 April 2025): 40% of qualifying expenditure
Credit type: Above-the-line payable tax credit (permanent rates set by Finance Act 2024)
Touring definition: Performs for paying public in at least 6 separate premises, or at least 14 performances across at least 2 separate premises
Qualifying productions: Drama, opera, musical, ballet, dance (excludes wild animal performances, commercial sport events)
Minimum UK expenditure: At least 10% of total core expenditure must be UK expenditure (effective 1 April 2024)
Claim deadline: Within 2 years of end of accounting period when production closes

Theatre Tax Relief provides Corporation Tax relief for theatrical production companies. From 1 April 2025, rates are permanently set at 45% for touring and 40% for non-touring productions, encouraging productions to tour beyond major cities and include smaller venues.

Touring production requirements

To qualify for 45% touring rate: a production must intend at least 6 separate premises, or at least 14 performances across at least 2 separate premises. This targets smaller-scale touring and regional theatre accessibility.

Eligibility requirements

1. Qualifying theatrical production: Drama, opera, musical, ballet, contemporary dance, or combination (excludes wild animal acts, commercial sporting events, cultural performances exploiting animals)

2. Performed live for paying public: Must be live performance with ticket sales (not rehearsals, closed events)

3. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure (from 1 April 2024)

4. UK theatrical production company: Responsible for production activities (artistic direction, technical, marketing, venue booking)

5. Separate production accounting: Each production requires separate accounts and tax relief claim

Determine if touring production qualifies: To receive 45% rate (vs 40% non-touring), production must intend at least 6 separate premises, or at least 14 performances across at least 2 separate premises. Plan tour schedule before claiming.
Track UK expenditure threshold: Maintain detailed records separating UK core expenditure from rest-of-world. Must meet 10% UK expenditure threshold (from 1 April 2024) to claim relief.
Establish separate production company or accounting: Each theatrical production must have separate accounting. Can use single company for multiple productions but must maintain separate accounts per production for relief claims.
Identify production closure date: Tax relief claim depends on accounting period when production closes (final performance to paying public). Track performance schedule and closure date carefully.
Claim on CT600 return: Submit Theatre Tax Relief claim on Corporation Tax return using form CT600L within 2 years of accounting period when production closed.

Theatre Tax Relief guidance

Orchestra Tax Relief

Orchestral concerts (minimum 12 instrumentalists performing live) receive a single 45% loss-surrender rate from 1 April 2025. Orchestra Tax Relief does not distinguish between touring and non-touring productions.

Orchestra Tax Relief

Corporation Tax relief for live orchestral concert productions with at least 12 instrumentalists. The rate is 45% from 1 April 2025, with no touring and non-touring distinction. Requires 10% UK expenditure from 1 April 2024.

Tax relief rate (from 1 April 2025): 45% of qualifying expenditure
Credit type: Above-the-line payable tax credit (permanent rates set by Finance Act 2024)
Orchestra definition: Minimum 12 instrumentalists performing live together
Minimum UK expenditure: At least 10% of total core expenditure must be UK expenditure (effective 1 April 2024)
Qualifying concerts: Live orchestral concerts for paying public (excludes session musician recording work)
Claim deadline: Within 2 years of end of accounting period when concert production closes

Orchestra Tax Relief supports orchestral concert production companies. From 1 April 2025, the loss-surrender rate is 45% of qualifying expenditure. Orchestra Tax Relief does not distinguish between touring and non-touring concert productions.

Orchestra definition

A qualifying orchestra has at least 12 instrumentalists performing together live, rather than session musicians recording in a studio.

Eligibility requirements

1. Live orchestral concert: Minimum 12 instrumentalists performing live together for paying public (excludes recording sessions, backing tracks)

2. Paying public audience: Ticket sales to general public (not private/closed events, rehearsals)

3. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure (from 1 April 2024)

4. UK concert production company: Responsible for producing the concert (artistic, technical, marketing, venue booking)

5. Separate production accounting: Each concert production requires separate accounts

Confirm orchestra size threshold: Ensure minimum 12 instrumentalists perform together live. Session musician recording work does not qualify - must be live concert for paying public.
Track UK expenditure: Maintain records separating UK core expenditure from rest-of-world. Must meet 10% UK expenditure threshold (from 1 April 2024).
Establish separate production accounting: Each orchestral concert production requires separate accounts. Can use single company but must maintain separate accounting per production for claims.
Claim on Corporation Tax return: Submit Orchestra Tax Relief claim on CT600 return using form CT600P within 2 years of accounting period when production closed.

Orchestra Tax Relief guidance

Museums and Galleries Exhibition Tax Relief

Introduced in April 2017, this relief supports museum and gallery exhibitions, with touring exhibitions (2+ venues, one outside London with ≤500,000 annual visitors) receiving enhanced rates.

Museums and Galleries Exhibition Tax Relief

Corporation Tax relief for museum/gallery/heritage exhibitions open to paying public. 45% for touring (more than one venue, ≥25% object overlap, ≤6-month gap between venues) or 40% non-touring (from 1 April 2025). Requires 10% UK expenditure (from 1 April 2024). Now permanent (sunset clause removed).

Tax relief rate - touring exhibitions (from 1 April 2025): 45% of qualifying expenditure
Tax relief rate - non-touring exhibitions (from 1 April 2025): 40% of qualifying expenditure
Credit type: Above-the-line payable tax credit (permanent rates set by Finance Act 2024)
Touring definition: Displayed for paying public at more than one venue, with at least 25% object overlap between venues and no more than a 6-month gap between deinstallation and reinstallation
Exhibition types covered: Museums, galleries, heritage exhibitions open to paying public
Minimum UK expenditure: At least 10% of total core expenditure must be UK expenditure (effective 1 April 2024)
Effective from: 1 April 2022 (accounting periods starting on or after this date)
Claim deadline: Within 2 years of end of accounting period when exhibition closes

Museums and Galleries Exhibition Tax Relief (MGETR) encourages touring exhibitions beyond London and major cities. From 1 April 2025, rates are permanently set at 45% for touring and 40% for non-touring. Touring requirements are specific: the exhibition must be held at more than one venue, with at least 25% object overlap between venues.

Touring exhibition criteria

The exhibition must also have no more than a 6-month gap between deinstalling at one venue and reinstalling at the next, ensuring relief targets exhibitions that genuinely tour rather than one-off displays.

Eligibility requirements

1. Qualifying exhibition: Museum, gallery, or heritage exhibition open to paying public (excludes purely commercial exhibitions, trade shows)

2. Public access with admission: Exhibition open to paying public (free admission with voluntary donations may qualify if evidence of donation requests)

3. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure (from 1 April 2024)

4. UK exhibition production company: Responsible for producing exhibition (curation, design, installation, marketing)

5. Separate exhibition accounting: Each exhibition requires separate accounts and tax relief claim

Assess touring exhibition qualification: For 45% rate (vs 40% non-touring), exhibition must be held at more than one venue, with at least 25% object overlap between venues and no more than a 6-month gap between deinstallation and reinstallation.
Track UK expenditure: Maintain detailed records separating UK core expenditure from rest-of-world. Must meet 10% UK expenditure threshold (from 1 April 2024).
Document admission charges: Exhibition must be open to paying public. If free admission, maintain evidence of voluntary donation requests and donation levels to demonstrate public paying status.
Establish separate exhibition accounting: Each exhibition production requires separate accounts. Can use single company but must maintain separate accounting per exhibition for relief claims.
Claim on CT600 return: Submit Museums and Galleries Exhibition Tax Relief claim on Corporation Tax return using form CT600S within 2 years of accounting period when exhibition closed.

Museums and Galleries Exhibition Tax Relief guidance

BFI Cultural Test certification

Film, TV, animation, and video games must pass the BFI cultural test to qualify for tax relief. This ensures government support benefits British content and production.

BFI Cultural Test Certification

BFI cultural test certifies British qualifying films, TV, animation, and video games for tax relief. Pass mark 18/35 points (or 16/31 limited-budget ≤ £15m). Free application. Interim certificate before production, final certificate after completion required for HMRC claims.

Film pass mark - standard: 18 out of 35 points
Film pass mark - limited budget: 16 out of 31 points
TV/Animation pass mark - standard: 18 out of 35 points
TV/Animation pass mark - limited budget: 16 out of 31 points
Video games pass mark: 18 out of 35 points
Points categories: Content, Contribution (makers/production), Cultural hubs/practitioners
Interim certificate: Provisional pass issued before production starts
Final certificate: Confirmed pass after completion - required for HMRC tax relief claim
Application fee: Free (no charge for cultural test applications)
Application timeline: Usually 4-6 weeks for decision

BFI cultural test certificates are required for all UK creative industry tax reliefs (Film, High-end TV, Animation, Video Games). The test ensures government tax reliefs support British content and production, not purely offshore activity filmed in UK.

Points structure

Content section: British setting, characters, subject matter

Contribution section: British lead creatives (writer, director), British cast, British production crew, British production facilities

Cultural practitioners/hubs: Production in culturally significant UK areas, use of British cultural heritage

Interim vs Final certificates

Interim certificate: Apply before production starts. Provides provisional pass based on planned production. Protects tax position if cultural test rules change during production. Recommended for all productions.

Final certificate: Apply after completion with actual production details. Required by HMRC for tax relief claim. Must submit to HMRC with CT600 claim.

Limited-budget threshold advantage

Films, TV programmes, and animations with total core expenditure ≤ £15 million use easier limited-budget test (16 out of 31 points vs 18 out of 35). Fewer points required because some high-cost elements (like expensive non-British cast) removed from scoring, making pass more achievable.

Calculate potential points before production: Review BFI cultural test guidance and score your planned production. Identify which points categories you can achieve (British setting, British lead creatives, British crew, UK facilities). Ensure minimum 18/35 points (or 16/31 limited-budget).
Apply for interim certificate: Submit interim cultural test application before production starts. Provide script, production plan, intended locations, planned cast/crew nationalities. Receives provisional pass protecting tax position.
Adjust production to maintain points: During production, monitor actual points against interim certificate. If cast, crew, or locations change, ensure still meeting minimum pass mark. Changes may affect final certificate.
Apply for final certificate after completion: After production completes, submit final cultural test application with actual production details - confirmed cast, crew nationalities, actual locations used, production facilities used.
Provide final certificate to HMRC: Include final BFI cultural test certificate with Corporation Tax return when claiming creative industry tax relief. HMRC requires final certificate to process claim.

Apply for BFI cultural test certificate

Cultural test points guidance

How to claim relief

Creative industry tax reliefs are claimed on your Corporation Tax return (CT600) using additional forms specific to each relief type:

Film: Form CT600J
High-end TV: Form CT600K
Animation: Form CT600N
Video Games: Form CT600M
Theatre: Form CT600L
Orchestra: Form CT600P
Museums/Galleries: Form CT600S

Claims must be submitted within 2 years of the end of the accounting period when the production completed.

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Creative industry tax reliefs overview

Available reliefs

Film Tax Relief

High-end Television Tax Relief

Animation Tax Relief

Video Games Tax Relief

Theatre Tax Relief

Orchestra Tax Relief

Museums and Galleries Exhibition Tax Relief

BFI Cultural Test certification

How to claim relief

Related guides in CT600 Returns

Creative industry tax reliefs overview

Available reliefs

Film Tax Relief

High-end Television Tax Relief

Animation Tax Relief

Video Games Tax Relief

Theatre Tax Relief

Orchestra Tax Relief

Museums and Galleries Exhibition Tax Relief

BFI Cultural Test certification

How to claim relief