Good news if you’re freelancing, contracting, or running your own business in the TV, animation, or video game industries: you may be entitled to pay less Corporation Tax.

If you’re freelancing, contracting, or running your own small company in the TV, animation, film, theatre or video-game industries, there are several UK Corporation Tax reliefs and expenditure credits that can reduce tax or generate payable tax credits. The core reliefs historically known as Film/Animation/Children’s TV/High-end TV/Theatre/Video Games Tax Relief remain in place, but there have been important administrative and timetable changes you need to know about.

Always speak to your accountant before relying on any relief, and obtain British certification from the BFI where required (interim & final certificates are standard)

How the schemes are grouped (short)

The reliefs generally fall into two operational areas:

• Audio-visual creative reliefs for film, high-end TV, animation and children’s TV (these require BFI British certification / cultural tests).
• Theatre relief (theatre companies) and Video Games relief, where the games regime is being transitioned to a new credit (VGEC) and VGTR is time-limited.

Animation Tax Relief (ATR)

Who can claim ATR: A UK company making an animated programme may qualify if the programme is certified as British (passes the BFI animation cultural test or is an official co-production), is intended for broadcast (including online), at least 51% of core expenditure is on animation activity, and the required proportion of core expenditure is UK-based (see BFI/HMRC guidance for the precise tests and documentary evidence required). The BFI issues interim and final certification. There is no simple overall monetary “cap” on ATR claims, though technical limits apply when calculating the exact cash/payable credit. ‍

Who doesn’t qualify: Ads/promotional films, news/current affairs, live events, training programmes, and certain types of entertainment (quiz/variety/panel shows) are excluded — always check HMRC’s exclusions list for edge cases.

Children’s Television Tax Relief (CTR)

Who can claim: A programme that is certified as British by the BFI (children’s cultural test), is intended primarily for an audience under 15 and for broadcast, and that meets the UK-expenditure threshold may qualify. Some game/quiz formats can qualify but HMRC imposes limits (for example prize values per programme have specific rules). The BFI handles certification and you’ll need to show supporting evidence when you claim.

Film Tax Relief (FTR)

Who can claim: British certification (BFI cultural test or qualifying co-production) is required. The film must be intended for theatrical release (or otherwise meet the project-type rules in HMRC guidance), and the claim must meet the UK expenditure thresholds and certification timing requirements (interim/final). The cultural test is points-based; the BFI is the certifying authority.

High-end Television Tax Relief (HTR)

Who can claim: High-end television (drama, comedy, documentary as defined by HMRC) that is certified British by the BFI, intended for broadcast, meets at least 10% UK core expenditure, and meets the minimum average qualifying production cost rule (the usual threshold is £1 million per hour of slot length, pro-rata) may claim. As with the other schemes, certification (interim & final) and careful recordkeeping are essential. ‍

Theatre Tax Relief (TTR) — important update (from 1 Apr 2024)

Who can claim: Theatre producers of plays, operas, musicals and similar dramatic live productions remain eligible for TTR where the performers perform predominantly live.
Key 2024–2025 change: From accounting periods beginning on or after 1 April 2024, the rules about qualifying core expenditure were updated to be UK-focused — the earlier references to EEA sourcing and the “25% EEA” wording used historically are no longer the simple test to rely on. For productions from that date you must check the HMRC guidance for the exact UK activity / core expenditure rules for eligibility and how to calculate qualifying costs. In short: the old 2019 wording about “25% on goods/services from the EEA” needs to be treated as superseded for many accounting periods from 1 Apr 2024 — verify the current test before claiming. ‍

Video Games Tax Relief (VGTR) — major change and timetable (VERY IMPORTANT)

Status in 2025: VGTR still exists but it is time-limited for new productions. Under current GOV.UK guidance:

• You cannot start the production phase of a game after 31 March 2025 and still claim VGTR.
• VGTR will close for all productions from 1 April 2027.
  For projects that cannot claim VGTR because of those dates, the UK has introduced the Video Games Expenditure Credit (VGEC) as a replacement pathway; the BFI administers British certification for games and provides guidance on accessing VGEC/AVEC for qualifying audiovisual projects. If you are a games developer, you must check whether your project start date still makes it eligible for VGTR or whether you should plan under VGEC — this is the single biggest change since 2019. ‍

Other VGTR points still relevant: VGTR historically required certification as British, that the game be intended for supply, and a minimum share of core expenditure to be UK-based. Some interactions with R&D reliefs and state-aid rules can restrict double-claiming; check the current HMRC technical guidance and take specialist advice. ‍

How the reliefs actually help (short explanation)

Most of these schemes work by giving an additional corporation tax deduction or enhanced expenditure credit on qualifying production costs, which can either reduce taxable profit or, for loss-making companies, generate a payable tax credit (cash-positive). The exact cash value depends on your company’s circumstances, whether you opt to surrender losses for payable credit, and how much qualifying expenditure you record — use the HMRC/BFI calculators/guidance and get an accountant to run the numbers for you.

Common administration points (BFI + HMRC)

• Certification: The British Film Institute manages British certification and the cultural tests for film, animation, TV and video games — you will normally need an interim certificate while the production is uncompleted and a final certificate after completion.
• Evidence & recordkeeping: HMRC requires documentary evidence of qualifying costs and UK activities. Keep contracts, payroll records, invoices, and proofs of where services were performed. HMRC publishes “how to support your claim” guidance — follow it closely.
• Interaction with grants/R&D: Some grants or state aid can affect eligibility; in some cases R&D tax relief and creative reliefs interact in ways that need careful planning — discuss cross-claims with an adviser.

Bottom line (practical next steps)

1. If you’re on a film/animation/TV production: check BFI cultural test rules and get interim certification early; ensure at least the minimum percentage of qualifying expenditure is UK-based before committing budgets.
2. If you’re in theatre: treat the 1 April 2024 rule change as material — check HMRC’s TTR page for the precise current UK expenditure test applicable to your accounting period.
3. If you’re in games: verify your production start date vs 31 March 2025 (VGTR cut-off) and plan whether to rely on VGTR, or prepare for VGEC. Apply for BFI certification where needed. This is the biggest change since 2019.
4. Get specialist tax/accounting advice before relying on the reliefs — the rules are technical, timing matters, and mistakes are costly.

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