Tax Relief for Animation
London is an attractive destination for all content production. The wealth of world-class talent and resources are underpinned by generous and user-friendly tax reliefs that can help you bring your project to the capital. Best of all:
- There is no cap on the amount of tax relief which can be claimed.
- All reliefs are capped at 80% of total production budget.
An Animation Production Company (APC) can claim a tax relief of up to 25% of qualifying expenditure for qualifying animation programmes.
The project must be an animated programme, although it may be mixed content. To qualify as an animation programme, at least 51% of the core expenditure on the completed programme must be on animation production expenditure.
Animation programme tax relief has no minimum expenditure requirement.
To qualify for animation programme tax relief, projects must:
- As of April 2015: Have a minimum 10% (previously 25%) of core expenditure spent in the UK
- Be intended for broadcast (including internet broadcast)
- Have one APC registered with Companies House and set up before animation shooting begins
- The APC must be responsible for all the animation programme making activity from pre-production through to completion
How your project can qualify as British
Your animation programme can qualify as British by passing the cultural test, or as an official co-production.
The UK has 10 bi-lateral co-production treaties and is also a signatory to the European Convention. Some of the bi-lateral treaties allow television co-production.