Tax relief for creative businesses exceeds £1bn

The film and creative industries continue to benefit from generous tax breaks, having claimed over £1 billion in the tax year ending March 2022, according to data from HMRC.

In the 2021/22 tax year, creative industry tax reliefs for corporation tax totalled £1.05bn, down from the £1.32bn paid out in the previous tax year, a decline mainly driven by a "sharp drop in the amount of film tax relief".

The group of eight tax relief schemes are open to companies involved with films, high-end and children's television, animation, video games, theatrical production, orchestral concerts and museum or gallery exhibitions.

£362 million of film tax relief was paid in response to 720 claims, down by 41% from the £617m paid in the previous tax year.

The tax relief amounts paid out in the 2021/22 tax year mainly relate to activities that took place in previous years, HMRC said, so the effects of the COVID-19 pandemic will be seen in this year's statistics.

Video games tax relief showed resilience throughout the pandemic, rising by 4% to £197m in 2021/22.

High-end television tax relief, accounting for 38% of the total amount paid out, exceeded the amount film tax relief accounted for the first time (35%).

The theatre sector was one of the worst hit by the pandemic, resulting in a dramatic decline in claims for theatre tax relief.

Total claims were £38m compared to over £75m the previous year.

Talk to us about creative industry tax reliefs for corporation tax.