Creative Sector Tax Reliefs - Animation

Animation Tax Relief (ATR)


Despite the UK’s success in creative animation, there is evidence that animated productions are moving abroad. The government wants to incentivise new UK productions and has made this relief as generous and as simple as possible.

The relief allows for 100% additional tax deduction on qualifying expenditure up to a maximum of 80% of overall expenditure, with a 25% payable tax credit of qualifying expenditure (equating to 20% of overall expenditure).

The legislation has specific rules: for instance, any animation production must be scheduled for broadcast; mixed content productions will be deemed to be animation as long as animation makes up at least 51% of the total production costs; but certain categories will not be eligible (e.g. programmes containing animation that are produced for training purposes).

Qualifying expenditure incurred after 1 April 2013 is eligible for the relief.

Detailed guidance on the scheme will be published in due course by HMRC.

Animation

Animation Tax Relief

MMP can work with you to assess your eligibility to claim; help you to identify qualifying expenditure; and to identify the start and end points of qualifying animation production.


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