Having attended the British Film Institute launch of the UK high-end TV and animation tax relief at BAFTA in 2013, Laurence Sargent, Director of Sargent Disc welcomed the 2015 reduction to the minimum spend requirements 'The enhancement to the High-End Television and Animation tax relief is a positive development for the UK creative industries. The impact of tax relief for these sectors has been substantial - with levels of high-end television and animation production increasing and providing growth opportunities across the production value chain'
Following the success of the UK Film tax relief system introduced in 2007, the UK Government launched similar incentives for high-end TV (HETV) and animation in 2013. These benefits were enhanced in April 2015 to include:
Prior to the availability of the HETV tax credit, some high-budget TV productions chose to film abroad to lower production costs. Since then 152 domestic, inward investment and co-productions accessed the HETV tax credit and generated a production spend of £1.15 billion (July 2013 - June 2015) [1] . A recent report shows that every £1 given by the UK government in HETV tax relief returns £8.31p to the UK economy.[2]
The following rules apply in order to access UK high-end television tax relief:
To qualify as British the production must either pass the High-End Television Cultural Test or be an official UK co-production. The UK has treaties with Australia, Canada, France, Israel, New Zealand, or the occupied Palestinian Territories.
Section |
Cultural Test |
Points |
A |
Cultural Content |
|
A1 |
High-end TV production set in the UK or EEA |
up to 4 |
A2 |
Three lead characters are British or EEA citizens or residents |
Up to 4 |
A3 |
The programme is based on British or EEA subject matter or underlying material |
4 |
A4 |
Original dialogue recorded mainly in English language |
Up to 6 |
B |
Creativity, Heritage and Diversity |
|
B |
The production represents British creativity, British heritage and diversity. |
up to 4 |
C |
Where Work is Carried Out |
|
C1 |
a) & b) At least 50% of the principal photography, SFX or VFX takes place in the UK c) 80% of either principle photography, SFX or VFX takes place in the UK
|
2
2 |
C2 |
At least 50% of the music recording or audio post-production or picture post-production takes place in the UK |
1 |
D |
Personnel Involved in the Making of the Production |
|
D1 |
1 of the 3 lead directors is an EEA citizen or resident |
1 |
D2 |
1 of the 3 lead scriptwriters is an EEA citizen or resident |
1 |
D3 |
1 of the 3 lead producers is an EEA citizen or resident |
1 |
D4 |
1 of the 3 lead composers is an EEA citizen or resident |
1 |
D5 |
1 of the 3 lead actors (or participants in the case of a documentary)is an EEA citizen or resident |
1 |
D6 |
At least 50% of the cast are EEA or residents |
1 |
D7 |
At least 1 of the 7 key HoDs is an EEA citizen or resident |
1 |
D8 |
At least 50% of the crew are EEA citizens or residents |
1 |
All sections |
Pass Mark 18/35 |
Total Points 35 |
This test is very similar to its Film Tax Relief equivalent.
18 points out of a possible 35 must be gained in order to pass the test.
The tax relief is paid to the TPC and is calculated as a
percentage of qualifying UK expenditure.
Sargent-Disc can provide a range of services to a production, from pre-production through to post. For information about our services, please contact us at Sargent-Disc. Let us help you with your production and employment enquiries about working in the UK, and take the drama out of your production. Our services include:
Budgeting
Production software
training
Production and post production accounting
Payroll
services
Production
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There are a number of specialist accountancy and audit firms in the UK that advise clients when structuring British qualifying films. Here are just a few:
Grant Thornton UK LLP
Christine Corner, Partner
Tel: +44 (0)20 7728 3171
Email: christine.corner@uk.gt.com
Saffery
Champness
John Graydon, Partner
Tel: +44 (0)20 7841 4281
Email: john.graydon@saffery.com
Shipleys LLP
Steve Joberns, Principal
Tel: +44 (0)20 7312 6558
Email: jobernss@shipleys.com
Please Note: This article is for information purposes only.