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The UK’s creative industries will benefit from tax reliefs that are among the most generous in the world, under Government plans announced earlier this week in London.
The Chancellor of the Exchequer said:
“I want the UK to remain a world leader in the creative industries, that’s why I am announcing tax reliefs that will be among the most generous available anywhere. High-end TV, animation and video games production are exactly the kind of innovative, high-tech industries at which this country excels, and the Government is determined to support them as part of our efforts to grow this economy.”
At Budget 2012, the Government announced that it would introduce tax reliefs, targeted at animation, high-end TV and video games as part of its ambition to make the UK the technology centre of Europe. The reliefs will help support technological innovation and ensure that creative industries continue to contribute to economic growth and British culture.
The UK is a world leader at production in these sectors and the Government is keen to provide the necessary support to maintain this status. Without Government support, there is a risk that underinvestment will lead to valuable productions moving overseas or not happening at all.
These reliefs will build on the success of the existing Film Tax Relief, which has led to £1 billion in extra investment in British cinema, supporting thousands of jobs and supporting skills invaluable to the broader economy.
The consultation invites views from individuals, companies, and representative and professional bodies on the proposed design options. The Government is particularly keen to hear from production companies and those working directly in the production of video games, animation and high-end television.
The consultation closes on 10 September 2012. The Government will take all responses into account before finalising the policy design for the reliefs and publishing draft legislation for consultation in the autumn.