New statistics published today by HMRC reveal a total of £1.11 billion was paid out in 2019/20 in tax reliefs for the creative sector. This represents a significant increase of £30 million compared to last year.
Creative sector reliefs are designed to encourage more investment into cultural activity across the UK. These sectors include – film, both high end (dramas, documentaries) and children’s programmes, animation, video games, theatre, orchestras and museums/galleries.
The reliefs increase the amount of tax-allowable expenditure – allowing qualifying companies to claim larger deductions from their taxable profits. Those which don’t make a profit can surrender the losses for a payable tax (cash) credit.
Commenting on the figures, Matt Appleton, RSM’s national lead on creative sector tax reliefs, said: ‘In these challenging times, it is so good to see that this tax relief is being claimed. Now, more than ever, our creative sectors need as much help as possible.
'Where no claims have been made before, I would urge all companies and charities in these fields to consider claiming. Even where claims have been made, I would strongly recommend revisiting these, as there is often scope for significantly increasing original claims.’