Glossary · UK
What is Creative Industry Tax Relief?
A group of UK Corporation Tax reliefs that lets qualifying creative companies claim extra deductions or payable credits on eligible production costs.
Full Definition
Creative Industry Tax Relief is a family of Corporation Tax reliefs for companies producing qualifying creative work, such as films, high-end TV, animation, children's TV, video games, theatre, orchestras and museum or gallery exhibitions. A company can deduct an additional amount of qualifying expenditure when calculating taxable profit, or surrender a loss for a payable tax credit from HMRC. The work must usually pass a cultural test or be certified by the relevant body, and only core production costs spent on goods or services used in the UK or European Economic Area typically qualify, subject to scheme caps. Newer audio-visual and video games reliefs are being delivered as expenditure credits rather than the older deduction model. These reliefs matter because they can significantly cut a production company's Corporation Tax bill, which is charged at 19% on profits up to GBP 50,000 and 25% above GBP 250,000, with marginal relief between. Specialist advice and proper certification are essential to claim correctly.