The UK’s creative
industries will benefit from tax reliefs that are among the most
generous in the world, under Government plans announced today.
At Budget 2012, the Government announced that it would introduce
tax reliefs, targeted at animation, high-end TV and video games as
part of its ambition to make the UK the technology centre of
Europe. The reliefs will help support technological innovation and
ensure that creative industries continue to contribute to economic
growth and British culture.
The UK is a world leader at production in these sectors and the
Government is keen to provide the necessary support to maintain
this status. Without Government support, there is a risk that
underinvestment will lead to valuable productions moving overseas
or not happening at all.
These reliefs will build on the success of the existing Film Tax
Relief, which has led to £1 billion in extra investment in British
cinema, supporting thousands of jobs and supporting skills
invaluable to the broader economy.
The Chancellor of the Exchequer said:
“I want the UK to remain a world leader in the creative
industries, that’s why I am announcing tax reliefs that will be
among the most generous available anywhere. High-end TV, animation
and video games production are exactly the kind of innovative,
high-tech industries at which this country excels, and the
Government is determined to support them as part of our efforts to
grow this economy.”
The consultation published today invites views from individuals,
companies, and representative and professional bodies on the
proposed design options. The Government is particularly keen to
hear from production companies and those working directly in the
production of video games, animation and high-end television.
The consultation closes on 10 September 2012. The Government will
take all responses into account before finalising the policy
design for the reliefs and publishing draft legislation for
consultation in the autumn.
Notes for Editors
1. The consultation on corporation tax reliefs for the creative
industries can be found at: http://www.hm-treasury.gov.uk/consult_creative_sector_tax_reliefs.htm
2. The Government announced in Budget 2012 that, following
consultation on the design, it will introduce corporation tax
reliefs for the video games, animation and high-end television
industries from April 2013, subject to State aid approval.
3.
The Government is proposing that these reliefs build on the
successful film tax relief model, which promotes the sustainable
production of culturally British films and in 2009/10 provided
around £95 million of support to the British film industry,
supporting over £1 billion of investment in 208 films.
4.
Following discussions with industry focused working groups and the
European Commission over the summer, a separate consultation on
the design of suitable cultural tests for each of these reliefs
will be launched in the autumn. These tests will identify
culturally British works that are to be considered eligible for
the new tax reliefs in line with the European Commission’s rules
on State aid.
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Treasury Correspondence and Enquiry Unit on
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