Overview of Creative Industries Tax Reliefs

The UK offers a range of tax reliefs and expenditure credits specifically designed to support companies working in creative industries, from film and television production to video games, theatre, and museum exhibitions. These schemes can reduce your Corporation Tax bill, or even provide payable cash credits if your company makes a loss. Understanding which relief applies to your business and how to claim is key to maximising the support available.

What are creative industry tax reliefs?

Creative industry tax reliefs are Corporation Tax incentives that help production companies reduce their tax bills. There are 8 different tax reliefs and 2 expenditure credits available, covering:

• Films
• High-end television
• Children's television
• Animated television
• Video games
• Theatrical productions
• Orchestral concerts
• Museum or gallery exhibitions

Tax reliefs work by allowing your company to increase the amount of allowable expenditure you can deduct from your profits, which reduces your Corporation Tax liability. If your company makes a loss, you may be able to surrender some or all of that loss and convert it into a payable tax credit that HMRC pays directly to you.

Expenditure credits work differently. They give your company a taxable credit based on your qualifying expenditure. This credit first pays off any Corporation Tax you owe, and can also be set against other tax liabilities. Any remaining amount is paid to your company as cash.

Who can claim these reliefs?

Your company can claim if it meets all of the following conditions:

• It's liable to Corporation Tax
• It's directly involved in the production and development of a qualifying creative project
• It's actively involved with decision-making
• It directly negotiates, contracts and pays for rights, goods and services

Crucially, your company must have responsibility throughout the entire development process. For films, TV programmes or games, this means from the start of pre-production until completion. For theatrical productions, orchestral concerts or exhibitions, your company must be responsible for producing, running and closing the production.

HMRC provides an online tool to help you check whether your company qualifies as the production company before you claim.

The cultural test requirement

For films, television programmes and video games, there's an additional requirement: your production must be certified as British. This means it must either pass a cultural test or qualify through an internationally agreed co-production treaty.

The British Film Institute (BFI) manages this certification process on behalf of the Department for Digital, Culture, Media and Sport. They will issue:

• An interim certificate for work that hasn't been completed yet
• A final certificate once production has finished

You'll need to obtain the appropriate certificate from the BFI before you can claim the relevant tax relief. Theatre, orchestra and museum/gallery productions don't need to pass a cultural test.

Choosing between reliefs and expenditure credits

Some creative sectors have both a traditional tax relief and a newer expenditure credit available. The key differences are:

Tax reliefs may be better if your company is profitable but wants to reduce its tax bill, or if you're making a loss and want to claim a payable credit.

Expenditure credits provide a more direct credit that's calculated as a percentage of qualifying expenditure, which is then used to pay your Corporation Tax and other tax liabilities before any balance is paid out.

The specific rates and calculations differ between each type of relief and credit, so it's worth comparing which option gives you the better outcome based on your company's particular circumstances and the nature of your production.

How to claim

You claim creative industry tax reliefs and expenditure credits on your Company Tax Return. From 6 April 2026 onwards, if you're making a claim, you must include the CT600P Creative Industries supplementary page with your return.

Timing your claim

You should submit your claim within:

• 2 years from the end of your period of account, or
• 42 months from the beginning of your period of account (for periods longer than 18 months)

Supporting evidence

You must submit supporting evidence for your claim using HMRC's online form. This evidence must be submitted either before or on the same day you submit your Company Tax Return.

If your accounting period is longer than 12 months, you'll need to split it into a 12-month period and a shorter period, submitting separate forms for each.

What information you'll need

The supporting evidence form requires detailed information including:

• Your company's Unique Taxpayer Reference (which must match your Company Tax Return), VAT number, and PAYE reference
• Project or production name and status
• Start date of pre-production or active development
• Your BFI certificate and DCMS reference number (for film, TV and video game claims)
• Detailed expenditure information, including core costs, UK costs, and any connected party transactions

For theatre, orchestra and museum/gallery claims, you'll also need dates of opening performances and venue details.

Connected party transactions

If you're claiming relief on expenditure involving connected parties (such as other companies in your group or companies controlled by the same people), you must disclose these transactions to HMRC. The form asks for the name of each connected party, transaction dates, amounts and descriptions of what was provided.

Amending a claim

Once submitted, you cannot amend the supporting evidence form. If you need to make changes, you must submit a completely new form for the same accounting period. If you've already submitted your Company Tax Return, you'll also need to re-submit it, even if the return itself doesn't need changing.

Getting help

HMRC's Creative Industries Unit can answer questions about claiming these reliefs. They also provide videos, webinars and detailed guidance manuals to help you understand how the schemes work.

For complex claims or if you're unsure which relief is best for your company, professional advice can help ensure you're claiming correctly and getting the maximum benefit available.

Sources

• Creative industry tax reliefs for Corporation Tax
• Support your claim for creative industry tax reliefs

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