The Chancellor announced, as part of his Budget, audio visual tax reliefs in the form of tax credits using the existing Research and Development Expenditure Credit (RDEC) as a basis.
The government will adapt the RDEC model to ensure the exact process of claiming the expenditure credits is designed in a way that will work effectively for the audio-visual subsectors.
The government will implement two models: one for the film and TV expenditure credits, which will be merged into a single scheme (the Audio-Visual Expenditure Credit), and one for video game expenditure credits (the Video Games Expenditure Credit).
The rates of relief will be:
Audio-Visual Expenditure Credit (AVEC):
- Films and high-end TV programmes will have a headline rate of 34%; and
- Animations and children’s TV programmes will have a headline rate of 39%.
Video Games Expenditure Credit (VGEC):
- Headline rate of 34%.
The new reliefs have arisen as a result of the previous consultation.
https://www.gov.uk/government/consultations/audio-visual-tax-reliefs-consultation
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