Creative Industry Tax Reliefs
Specialist accountants for film, television, animation, video games, theatre, orchestra and museum productions claiming HMRC creative industry tax reliefs and the new AVEC and VGEC expenditure credits.
Creative industry tax reliefs are UK Corporation Tax incentives that reward companies producing British film, television, animation, video games, theatre, orchestral concerts and gallery exhibitions. They increase deductible costs or generate an expenditure credit, and loss-making productions can surrender the benefit for a cash repayment from HMRC.
Which creative reliefs can my company claim?
Film & High-End TV
Feature films and high-end television dramas and documentaries claim the Audio-Visual Expenditure Credit at a 34% headline rate on qualifying UK core expenditure, subject to the BFI cultural test.
Animation & Children’s TV
Animation and children’s programmes claim AVEC at an enhanced 39% headline rate, reflecting the higher labour intensity and cultural value of this production work.
Video Games (VGEC)
UK developers claim the Video Games Expenditure Credit at 34% on qualifying design, production and testing costs, following a BFI video games cultural certificate.
Theatre (TTR)
Producers of plays, musicals, opera, ballet and dance claim Theatre Tax Relief, with a higher rate available for touring productions that reach multiple venues.
Orchestra (OTR)
Orchestral concert producers claim Orchestra Tax Relief on qualifying production expenditure for live performances by a minimum-sized ensemble.
Museums & Galleries (MGETR)
Charitable museums and galleries claim Museums and Galleries Exhibition Tax Relief on the cost of curating and producing qualifying exhibitions, including touring shows.
How does the new AVEC and VGEC regime work?
The government has replaced the historic enhanced-deduction reliefs for film, television, animation and video games with two expenditure credits: the Audio-Visual Expenditure Credit (AVEC) and the Video Games Expenditure Credit (VGEC). Rather than boosting your deductible costs, these give a taxable “above-the-line” credit calculated directly on qualifying expenditure.
Film and high-end TV attract a 34% headline credit, while animation and children’s TV attract 39%. Video games receive 34%. Because the credit itself is taxable, the net benefit is lower than the headline figure once Corporation Tax is applied. Qualifying expenditure is generally capped at 80% of total core costs.
New productions must use AVEC and VGEC, while a transition window allowed some existing productions to continue under the old rules before the schemes close entirely. Our film and TV accountants map each production to the correct regime so you never miss a claim.
Film & High-End TV
AVEC headline credit on qualifying UK core expenditure
Animation & Children’s TV
Enhanced AVEC headline credit
Video Games
VGEC headline credit on qualifying costs
Expenditure cap
Maximum share of core costs that can qualify
Who is eligible and how is a claim made?
Eligibility conditions
Each qualifying production must sit inside a separate UK company that is responsible for the production and actively engaged in decision-making. For film, TV, animation and games, the production must pass the relevant BFI cultural test or qualify as an official co-production under an international treaty. High-end TV carries additional minimum thresholds on cost per hour and slot length.
Theatre, orchestra and museum reliefs do not use the cultural test but have their own conditions: a genuine intention to perform live to the public, minimum ensemble sizes for orchestras, and qualifying exhibition criteria for galleries. Touring productions can access higher rates.
The HMRC claim process
- Establish a qualifying production company and track core expenditure separately for each title.
- Apply to the BFI for an interim or final British cultural certificate, or confirm co-production status.
- Prepare the credit or relief computation and the mandatory additional information form.
- Submit the claim through the company’s Corporation Tax return (CT600) with the supporting evidence pack.
- Receive the benefit as a reduction in tax or, for loss-making companies, a payable cash credit.
What about theatre, orchestra and museum reliefs?
Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibition Tax Relief (MGETR) work differently from the audio-visual credits. They remain enhanced-deduction reliefs that produce a payable tax credit calculated on qualifying core production or exhibition costs, with higher headline rates available for touring work. If you produce live performances, explore our dedicated theatre accounting support.
Theatre Tax Relief
For plays, musicals, opera, ballet and dance intended for live public performance. Non-touring and touring rates apply, with touring productions reaching several venues qualifying for the higher rate.
Orchestra Tax Relief
For live orchestral concerts by a qualifying ensemble. Companies can elect to claim across a concert series, simplifying administration for repertory seasons.
Museums & Galleries
For charitable bodies and their trading subsidiaries producing qualifying exhibitions, including touring exhibitions that travel between venues.
How do UK reliefs interact with US productions and financing?
The UK reliefs are HMRC incentives with no direct US equivalent, but many productions are financed, co-owned or distributed by US studios and investors. The United States operates its own federal and state incentives — including a long-standing deduction for qualifying film and television production costs and generous state-level credits — which can sit alongside a UK AVEC claim on a genuine international co-production.
Where a project crosses borders, careful structuring prevents double taxation and preserves relief in both territories. Our team combines UK creative expertise with dedicated US tax services and cross-border tax planning, so US and UK reporting stay aligned and treaty benefits are claimed correctly.
Built for the creative sector
We act for production companies, studios, developers and cultural organisations claiming the full range of UK creative reliefs. We handle BFI certification, expenditure tracking and the shift to AVEC and VGEC end to end — and we speak the language of both HMRC and the productions we serve.
›Book a ConsultationSpecialist creative knowledge
We work across all eight reliefs, from feature films to gallery exhibitions, and stay current with each rate and rule change.
BFI & certification support
We prepare and manage cultural test applications and co-production paperwork so certificates are secured on time.
AVEC & VGEC transition
We map every production to the correct regime and quantify the true net benefit before you file.
Cross-border capability
US-UK expertise for internationally financed productions, keeping relief intact in both jurisdictions.
Ready to claim your creative tax relief?
From a single short film to a full slate of productions, we handle certification, computations and HMRC submission so you keep more of what you create.
Turning qualifying spend into a real cash benefit
Every credit or relief starts with accurately identifying and tracking the core costs that qualify for each production. We separate qualifying from non-qualifying expenditure, model the true net benefit after Corporation Tax, and structure loss-making titles so the value can be surrendered for a payable cash credit.
- ›Clear split of qualifying and non-qualifying core costs
- ›Net-of-tax benefit modelled before you file
- ›Payable cash credits for loss-making productions
From BFI certification to HMRC submission, handled end to end
We manage the full claim journey so certificates land on time and computations stand up to scrutiny. That means preparing cultural test and co-production applications, assembling the additional information form and evidence pack, and submitting the claim through your Corporation Tax return with confidence.
- ›Cultural test and co-production applications prepared for you
- ›Robust computations and evidence packs built to HMRC standards
- ›Claims filed through your CT600 with ongoing support
Official resources & further reading
Authoritative guidance from the relevant tax authorities and regulators. Always confirm current thresholds and deadlines on the official source.
Questions & Answers
They are eight Corporation Tax incentives for qualifying UK productions: Film, High-End TV, Animation, Children’s TV, Video Games, Theatre, Orchestra, and Museums & Galleries. They either enhance deductible costs or, under the newer regime, generate an expenditure credit. Each rewards culturally British production activity and can produce a cash repayment for loss-making companies.
The Audio-Visual Expenditure Credit (AVEC) replaced the old film, TV and animation reliefs. Instead of an enhanced deduction, AVEC is a taxable “above-the-line” credit on qualifying expenditure. Film and high-end TV receive a 34% headline credit and animation and children’s TV 39%. Older productions could use the previous scheme during a transition period ending in 2027.
You claim through your company’s Corporation Tax return (CT600), supported by an additional information form and, for most audio-visual and games claims, a British cultural certificate from the BFI. Costs must be tracked per qualifying production held in a separate company. Jungle Tax prepares the computations, evidence pack and BFI application to secure approval.
Yes. Most reliefs require either a BFI cultural certificate or qualification as an official co-production under an international treaty. The points-based cultural test assesses British content, cultural contribution, hubs and practitioners. Video games use a separate BFI test. Theatre, orchestra and museum reliefs do not use the cultural test but have their own qualifying conditions.
Yes. This is a core advantage of the creative reliefs. A loss-making company can surrender its loss for a payable cash credit rather than carrying it forward. Under AVEC and VGEC the credit is paid net of Corporation Tax, giving valuable cash flow to productions that are not yet profitable. Jungle Tax models the net benefit before you file.
Yes. The Independent Film Tax Credit offers an enhanced AVEC rate for qualifying lower-budget British films, and additional support applies to visual effects (VFX) costs. These build on the standard AVEC framework and carry their own budget caps and start-date conditions. We confirm eligibility and quantify the uplift as part of your claim strategy.
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