Animation Developer Guide 8: Animation Tax Relief Claims
The Guides
- Animation Studio Accounting
- Guide 1- Limited Companies
- Guide 2 – Personal Tax
- Guide 3 – VAT
- Guide 4 – Payroll and Workplace Pensions
- Guide 5 – Funding your Prototype
- Guide 6 – Corporation Tax
- Guide 7 -R&D Tax Relief Claims for SMEs
- Guide 8 – Animation Tax Relief Claims
- Guide 9 – Understanding your Accounts
- Guide 10 – British Film Institute (BFI) certification
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Introduction
Animation Tax Relief (ATR) is a creative industry tax relief for Animation Development Companies (ADC) which was introduced in April 2014. You can claim ATR up to 2 years after a qualifying accounting period end.
Qualifying Rules
Your company qualifies for and can claim creative industry tax reliefs if it is:
- liable to Corporation Tax
- directly involved in the production and development of an Animation Programme
Eligibility
Your company will be entitled to claim ATR if the Animation is British and:
• the programme is intended for broadcast – this includes streaming online
• at least 51% of the core expenditure is on animation
• at least 10% of the core costs relate to activities in the UK
If your company qualifies to claim ATR your company is also entitled to:
• an additional deduction in computing its taxable profits
• where that additional deduction results in a loss, to surrender losses for a payable tax credit
The ‘Cultural Test’
To qualify for the creative industry tax reliefs all animation programmes must pass a cultural test with the BFI, certifying that the production is a British animation programme.
Information you will need
1. Confirmation of the start date and end date of the development of each animation programme subject to a ATR claim.
2. A copy of the interim or final certificate issued by the British Film Institute for each animation programme under development during the accounting period, which confirms a programme is culturally British.
3. Details of estimated and actual income for each animation programme under development, which is subject to a ATR claim.
4. Details of estimated and actual expenditure incurred on the development of each programme.
Download the complete guide
All of the Animation Developer Guides in this section are available as a single document to download as a PDF. Simply click the button below to go to the download page.
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