Tax Relief for Animated Productions (ATR)

Posted on Dec 14th, 2016 | Tax

If your company is working on a creative project which involves animation, you may be entitled to pay less Corporation Tax.

Who qualifies for Animation Tax Relief?

Your company may be entitled to claim Animation Tax Relief on a programme if:

  • it passes the cultural test – a similar test to that for Film Tax Relief but within the European Economic Area (EU countries as well as Iceland, Liechtenstein, and Norway)
  • it is intended for broadcast
  • at least 51% of the total core expenditure is on animation
  • at least 10% of the total production costs relate to activities in the UK

Animations commissioned together are treated as a single programme. There is no cap on the amount that can be claimed.

Who doesn’t qualify for Animation Tax Relief?

Sadly, your company can’t claim ATR if the programme:

  • is an advertisement or promotional programme
  • is a news, current affairs, or discussion programme
  • is a quiz or game show, panel show, variety show, or similar programme
  • consists of, or includes an element of, competition or contest
  • broadcasts live events, including theatrical and artistic performances
  • is produced for training purposes

This advice in this blog is for guidance purposes only. Due to the complex nature of the criteria for Animation Tax Relief, it is highly recommended that you speak to your accountant before assuming your project qualifies.

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Written by Tom West

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