Creative Industry Tax Relief: Film, TV, Video Games & More on Your CT600
The UK offers some of the most generous creative industry tax reliefs in the world. If your company produces films, TV programmes, video games, animation, theatre, or orchestral performances, you could claim significant tax relief — or even receive a cash payment from HMRC if your company is loss-making.
Audio Visual Expenditure Credit (AVEC) — From 1 January 2024
AVEC replaced the old film tax relief, high-end TV tax relief, animation tax relief, and children's TV tax relief from 1 January 2024. The credit is calculated at a statutory gross rate — but because it is treated as taxable income, the effective net benefit after 25% Corporation Tax is lower:
| Category | Statutory Credit Rate | Net Benefit (after 25% CT) | Min UK Expenditure |
|---|---|---|---|
| Film | 34% | ~25.5% | 10% of core costs |
| High-end TV | 34% | ~25.5% | 10% |
| Animation (film/TV) | 39% | ~29.25% | 10% |
| Children's TV | 39% | ~29.25% | 10% |
Qualifying Conditions
- UK-registered production company
- Content intended for theatrical release or broadcast
- Pass the BFI cultural test
- At least 10% of core expenditure is UK expenditure
Video Games Expenditure Credit (VGEC)
| Statutory Credit Rate | Net Benefit (after 25% CT) | Min UK Expenditure |
|---|---|---|
| 34% | ~25.5% | 10% of core costs |
The game must be intended for supply to the general public and pass the BFI cultural test. VGEC shares the same 34% statutory rate as film and high-end TV under AVEC.
Example: Indie Game Studio
£400,000 development spend, £350,000 of which qualifies as UK expenditure:
| Item | Amount |
|---|---|
| UK qualifying expenditure | £350,000 |
| VGEC statutory rate | 34% |
| Gross credit | £119,000 |
| Corporation Tax on credit (25%) | £29,750 |
| Net benefit | ~£89,250 |
Theatre, Orchestra & Museums
These reliefs have permanent rates from 1 April 2025:
| Relief | Touring | Non-touring |
|---|---|---|
| Theatre | 45% | 40% |
| Orchestra | 45% | — |
| Museums & Galleries | 45% | 40% |
Orchestra Tax Relief applies at 45% for all qualifying orchestral concerts — there is no separate non-touring rate.
Payable Credits
If your company is loss-making, the credit can be paid in cash by HMRC. This is crucial funding for pre-revenue creative companies and means you can benefit even before generating profits.
CT600 Reporting
Creative industry reliefs are reported on the main CT600 alongside additional supplementary pages:
| Box / Form | Description |
|---|---|
| Box 96 | Tick to indicate you are claiming creative industries relief — this triggers the CT600P supplementary page |
| CT600L | Supplementary page for AVEC and VGEC expenditure credits |
| CT600P | Supplementary page specific to creative industry claims |
Box 96 on the main CT600 is the indicator that tells HMRC you are filing CT600P. The credit values flow from CT600L and CT600P into your main-form Corporation Tax calculation.
Because creative industry reliefs require the CT600L and CT600P supplementary pages, specialist tax software or a tax adviser is needed to complete the full submission.