Calculating Creative Industries Tax Relief

Introduction

Creative industries tax reliefs help production companies reduce their Corporation Tax bill by claiming additional deductions or expenditure credits on qualifying costs. This article explains how to calculate your relief amount and complete the CT600P supplementary pages, whether you're claiming under the newer expenditure credit system or the predecessor tax relief schemes.

Understanding the two types of relief

Creative industries support comes in two forms, depending on your production type and when you started work:

Expenditure credits are now available for:

• Audio-Visual productions (films and TV programmes) through the Audio-Visual Expenditure Credit (AVEC)
• Video games through the Video Games Expenditure Credit (VGEC)

Tax reliefs remain available for:

• Theatre productions
• Orchestra performances
• Museums and galleries exhibitions
• Older film, TV and video game projects that haven't switched to expenditure credits

The calculation method differs between these two systems, but both require you to track UK spending carefully.

Calculating Audio-Visual Expenditure Credit

The AVEC system applies to films and TV programmes. Your calculation follows a five-step process defined in the Corporation Tax Act 2009.

Key terms you need to understand

Relevant global expenditure means production costs that count as core expenditure and aren't excluded. This is expenditure that's brought into account when calculating the profits of your separate production trade for the accounting period.

UK expenditure is the portion of your relevant global expenditure that was spent on goods and services used or consumed in the United Kingdom.

Qualifying expenditure is the amount calculated at step 4 of the credit calculation process.

Expenditure credit is the final relief amount you can claim, calculated at step 5.

Additional credit for visual effects

You can claim an additional VFX credit on top of your standard expenditure credit, but only for:

• Films that are not animated or independent films
• High-end TV programmes

This additional credit has its own calculation method. If your VFX credit calculation produces a negative amount, you cannot enter it separately—instead, you must reduce the main expenditure credit in column D by the negative amount.

Production categories

Different rates and thresholds apply depending on your production category:

Film – for films that are not animated or independent films

High-end TV programmes – television programmes with higher production values

Children's TV programmes – programming specifically for children

Animation – both animated films and animated TV programmes combined

Independent film – films that have received specific certification as low-budget productions

Calculating Video Games Expenditure Credit

The VGEC follows a similar structure to AVEC. You'll work through the calculation steps to determine your qualifying expenditure and final credit amount for each accounting period.

Working out theatre, orchestra and museum reliefs

These reliefs still use the tax relief method rather than expenditure credits. Your calculation will determine an additional deduction you can claim against your trading profits.

Special timing rule for 2025

If your accounting period straddles 1 April 2025 for theatre, orchestra or museums and galleries exhibition tax relief claims, you must split your calculation into two separate periods:

• The period before 1 April 2025
• The period from 1 April 2025 onwards

For example, if your accounting period runs from 28 March 2025 to 8 April 2025, you need to calculate:

• 28 March 2025 to 31 March 2025
• 1 April 2025 to 8 April 2025

Preparing your calculation

Before you start, gather the following information:

• Your accounting period start and end dates
• Details from any previous claims, including total amounts of:

- Income earned

- Expenditure paid

- Core expenditure

- UK core expenditure

- Non-core expenditure

- Additional deduction claimed or qualifying expenditure to date

- Loss surrendered, if any

• Estimated total income and costs for the production
• Total UK and non-UK qualifying expenditure
• Any losses brought forward

Accounting period length

If your period of account exceeds 12 months, you must split it into two or more accounting periods of up to 12 months each. You need to complete a separate calculation for each accounting period.

Completing the CT600P supplementary pages

You must file CT600P supplementary pages with your Corporation Tax return if you're claiming any creative industries relief or expenditure credit.

Basic company information

Complete boxes P1 (company name) and P2 (your 10-digit Unique Taxpayer Reference), then enter your accounting period start and end dates in boxes P3 and P4 using the format DD MM YYYY. The period cannot exceed 12 months.

Audio-Visual Expenditure Credit section

Do not include films or TV programmes in this section if you're still claiming under the predecessor tax relief schemes—those go in box P260 onwards.

The form uses a table format with columns for:

• Column A: Relevant global expenditure for the accounting period
• Column B: UK expenditure (from column A)
• Column C: Qualifying expenditure for the accounting period
• Column D: Expenditure credit claimed for the accounting period (excluding additional VFX credit)
• Column E: Additional credit for visual effects (where applicable)

You'll complete separate rows depending on your production category:

Box P5 (Film) – combine totals for all films that are not animated or independent films

Box P10 (High-end TV programmes) – combine totals for all high-end TV programmes

Box P15 (Children's TV programmes) – combine totals for all children's TV programmes

Box P20 (Animation) – combine totals for all animated productions (both films and TV)

Box P25 (Independent film) – combine totals for all independent films

Combining multiple productions

If your company has multiple productions in the same category, add together all the relevant figures. For example, if you've produced two high-end TV programmes, you would enter:

• The sum of both productions' relevant global expenditure in column A
• The sum of their UK expenditure in column B
• The sum of their qualifying expenditure in column C
• The sum of expenditure credit claimed on both in column D
• The sum of any additional VFX credit claimed on both in column E

Even though you enter combined totals on the form, your computations must show detailed calculations for each production separately.

Using HMRC's online calculator

HMRC provides an online calculator to help you work out your relief or expenditure credit amount. You'll need all the information listed in the "Preparing your calculation" section above before you start.

The calculator will guide you through the relevant steps based on your production type and the relief or credit you're claiming.

Sources

• Work out creative industry tax relief or expenditure credits for your production
• Completing the CT600P page for creative industries reliefs

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.