UK Government opens consultation on cultural test for “high-end TV” tax break

Editor | 01-10-2012

In the next stage of its decision to introduce tax relief for the animation, high-end television and video game industries, the UK government is now seeking views on a proposed test that will identify those areas considered eligible on a cultural basis.

In providing tax relief, the Government says it is seeking to promote the sustainable production of culturally British product/content by encouraging the production of video games, animation and high-end TV that might not otherwise be made and to promote sustainability in these sectors. Furthermore it believes that such action will maintain a critical mass of UK infrastructure, creative and technical expertise, to facilitate the production of culturally British services.

Now the UK’s Department for Culture, Media and Sport (DCMS) is proposing to award points for those elements that contribute to the overall cultural value of a video game, animation or high-end television programme. When considering the possible design of the cultural tests for tax relief for each sector, the test currently applying to the UK’s existing film tax relief offered a useful starting point as did the cultural dimension of tax credits in other countries.

Said Creative Industries Minister Ed Vaizey: “Government is committed to supporting these creative and dynamic sectors by introducing tax reliefs for these industries. The film tax relief has been a huge success and I encourage all those with a vested interest in the animation, high-end television and video games industries to take part in this exercise, and make sure your views are known.” Added Exchequer Secretary to the Treasury, David Gauke:

“The Government is bringing in these new tax reliefs – to be among the most generous internationally – to support the UK’s already world-class creative industries. These sectors not only make a cultural contribution to the UK, they make an economic one, creating products showcasing Britain that we export around the world.”

The deadline for consultation responses is 29 October 2012 and those in the TV sector interested in applying should email [email protected]