We welcome the outcome of the Government’s consultation on audio-visual tax reliefs announced by Chancellor Jeremy Hunt in the Spring Budget.
The Government will maintain the £1 million per hour expenditure threshold for high end TV, increase the relief for children’s and animation productions, and move to a refundable expenditure credit model.
In December 2022, Pact submitted a substantial report on children’s and animation TV tax credits to Government recommending an increase to the current tax relief. Therefore, we're pleased to see the level raised from 25% to 39% which should help stimulate investment in children’s and animation content and build on the success of the existing tax credit. We are particularly pleased that Government has listened to our concerns about the future of UK children’s TV production and has acted to support this critical part of the UK TV sector.
We are also pleased that the Government has listened to concerns raised by both Pact and UK broadcasters about raising the minimum expenditure threshold for HETV tax relief.
Pact provided evidence to the Government to show that raising the threshold would damage domestic production, particularly regional productions, comedies and documentaries as these productions often have lower budgets, and would also result in fewer British dramas and in particular comedies being made in the UK.
We’re very happy that the Government has listened to the industry’s concerns and yesterday's announcement that the threshold will remain unchanged should give everyone certainty about the support going forward as projects are being financed.
We look forward to the Government publishing further details on the new expenditure credit system in due course and will keep members updated.