High-end TV over Christmas? A new (comic) relief

As reported in September’s PBB, following tax relief for TV video games and theatre, the Government has announced a review to widen the availability of high-end TV relief, the introduction of a new relief for children’s TV and consultation on introducing a relief for orchestras.

The threshold of UK expenditure required to be met for a film to qualify for UK film tax relief was reduced from 25% to 10% with effect from 1 April 2014. However, the threshold of UK expenditure that must be met for certain production expenditure to qualify for high-end TV tax relief has remained at 25%, the rate applicable when this relief was first introduced in April 2013.

The Government has announced it will explore with the industry whether to reduce this threshold in line with that for film relief to 10% and also whether the cultural test should be updated. Programmes that qualify for TV tax relief must meet certain criteria which include, for those that are not animation, having a ‘slot length’ of at least 30 minutes and average core expenditure per slot length hour of at least £1m.

Certain types of programme are excluded such as certain entertainment and live performances.

Discussions in Parliament have indicated that only 1% of new children’s programmes are made in the UK which has prompted the Government to announce it will introduce a new relief for children’s TV programmes in Finance Bill 2015 at a rate of 25% on qualifying production expenditure.

There is also a commitment to consult in 2015 on the potential introduction of tax relief for orchestras from 2016.