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, High-end TV, Animation and Children’s TV all now sit within AVEC categories (no longer separate reliefs).

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 credits for film, high-end TV, animation and children’s TV (now delivered through AVEC and requiring 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 now largely in a transitional / legacy phase for older productions only.

Audio-visual creative reliefs (now under AVEC)

These categories now fall under the Audio-Visual Expenditure Credit (AVEC) system:

Animation Tax Relief (within AVEC)

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.

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Children’s Television Tax Relief (within AVEC)

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 (within AVEC)

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 (within AVEC)

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 Expenditure Credit

Who can claim: Theatre producers of plays, operas, musicals and similar dramatic live productions may qualify under the Theatre Expenditure Credit (TEC), which replaced Theatre Tax Relief.

From accounting periods beginning on or after 1 April 2024, the rules about qualifying core expenditure were updated to be UK-focused. The previous “25% EEA” framing no longer applies and should not be relied on for current claims. You must use the updated HMRC UK expenditure rules instead. 

Video Games Expenditure Credit VGEC

Status in 2026/27:

Video Games Tax Relief (VGTR) is now only available for legacy or transitional claims, with new projects instead falling under the Video Games Expenditure Credit (VGEC).

Key updates:

• New production phases are no longer eligible for VGTR under current HMRC rules.
• VGTR is in the process of being phased out completely.
• VGEC is now the main scheme for new video game development claims.

If you’re a games developer, you must check whether your project qualifies under VGTR (legacy) or VGEC (new regime) — this timing distinction is now critical.

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.

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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 UK expenditure thresholds are met before committing budgets.
2. If you’re in theatre: the 1 April 2024 changes are material — ensure you are applying the updated UK-focused TEC expenditure rules.
3. If you’re in games: VGEC is now the default regime for new projects, while VGTR only applies to legacy cases. Timing is critical.
4. Get specialist tax/accounting advice before relying on the reliefs, the rules are technical, timing matters, and mistakes are costly.