Animation Tax Relief

What is Animation Tax Relief?

Animation Tax Relief (ATR), along with High-end Television Tax Relief, was introduced on the 1st April 2013, and is available to animation production companies that are within the Corporation Tax scheme. Relief is available subject to the production company, and the programme, meeting certain qualifying conditions.

What can qualify for Animation Tax Relief ?

ATR is available in respect of an animation programme if:

  • the programme passes the BFI cultural test
  • the programme is intended for broadcast
  • at least 51% of the total core expenditure is on animation
  • at least 10% of the total production costs relate to goods or services used or consumed in the UK (but note that you are not able to claim ATR for outgoings such as development, distribution and other non-production activities)

Note: Animations commissioned together are treated as one programme

CALLBACK REQUEST

Some of the more common questions about ATR include:

  • When should we apply to the British Film Industry’s Certification Unit for a Cultural Certificate?
  • Which certificate should we apply for?
  • What constitutes Development Expenditure?
  • How should we apportion costs between Core and Non-Core activities?

We are here to help you with all the above and more so that you receive the Animation Tax Credit to which you are entitled.

You could receive up to 25% of your core expenditure back as tax relief, allowing you to re-invest it in your next project.

ATR cannot be claimed if the programme:

  • is an advertisement or promotional programme
  • is a news, current affairs or discussion programme
  • is a quiz or game show, panel show, variety show, or similar programme
  • consists of or includes an element of competition or contest
  • broadcasts live events, including theatrical and artistic performance
  • is produced for training purposes

Find detailed guidance on the taxation of animation in the Animation Production Company Manual.

Want to find out more? Call us on
01275 867350 to start the conversation.