Children's Television Tax Relief
What is Children’s Television Tax Relief?
Children’s Television Tax Relief (CTR) was introduced on the 1st April 2015. It is an extension of High-end Television Tax Relief, but is specifically for the producers of children’s television programmes.
The primary audience is expected to be under 15 years old
Who can claim it?
Children’s TV Tax Relief can be claimed by companies producing children’s television programmes. As with all other Creative Industry Tax Reliefs, it can only be claimed by a company that is subject to corporation tax.
The production itself must meet certain criteria:
- Programmes must be intended for broadcast
- They must either pass the cultural test or qualify as a co-production
- At least 10% of the production costs must be from activities in the UK
- Your programme must be for children where the primary audience is expected to be under 15 years old
Programmes that are commissioned together are treated as a single programme under the guidelines for claiming CTR.
While High-end Television Tax Relief is subject to a £1 million per programme hour threshold and a 30-minute slot length requirement, Children’s Television Tax Relief is not. The lower thresholds for CTR reflect the different formats and types of production made for the younger audience.
CTR also has certain allowances for quiz and game shows, provided the prize is not above £1,000.
Who can’t claim?
As with all of the Creative Industry Tax Reliefs, certain productions are not eligible for CTR claims. These include:
- advertisements or promotional programmes
- news or current affairs programmes
- panel or variety shows
- live events, including theatrical performances
- programmes produced for training purposes
BFI cultural test certification must be received before the claim can be made. Finch & Associates can help you understand the timeline for filing and how the BFI cultural test is applied for.
What costs qualify?
The costs incurred are the basis of any CTR claim, and this means that accurate record keeping is essential for a successful claim. Relief is claimed on core expenditure in the UK. This may include pre-production, post-production, and intellectual property rights costs. Finch & Associates’ team of advisors can help to determine which expenditures are eligible for a claim.
Provided all criteria are met, companies can claim whether or not a production is profitable. This could be an additional deduction of 100% of the enhanceable expenditure or, if a loss has been made, 25% of the loss up to the amount of the enhanceable expenditure. We can help to determine what deduction might be available for a given production.