The UK has further enhanced its appeal to the technology industry by introducing specific tax reliefs for creative industries.
For businesses involved in animation, video gaming and high end television programmes, the UK Government has introduced initiatives to support investment in this industry, back dated from 1 April 2013.
Companies which are eligible are able to claim enhanced expenditure deductions and have the possibility of a repayable tax credit where the company makes a loss. As part of the conditions of qualifying for the relief the film, television programme, animation or video game must pass the ‘cultural test’ and obtain certification that the production is British from the British Film Institute.
Broadly speaking, under the new legislation, companies will be able to claim an additional deduction of the lower of 100% of UK qualifying production expenditure, or 80% of total qualifying expenditure.
Please contact us for more information on this topic. As mentioned, specific qualifying criteria apply.