Budget 2013: Deloitte comments on creative sector tax relief
21 March 2013
Commenting on the introduction of creative sector tax relief, Rachel Austin, director at Deloitte, said:
“In his 2012 Budget the Chancellor announced his intention to introduce a creative sector tax relief. In the 2012 Autumn Statement he then announced that this relief will offer a payable tax credit worth up to 25% of qualifying expenditure on “culturally British” video gaming, animation and high end TV drama and documentaries.
“Subject to EU State Aid approval, the relief is due to be introduced from 1 April 2013. The Government announced today that the European Commission is expected to approve the animation and high-end television tax reliefs by then. The TV industry will be pleased to hear this and will be looking forward to the publication of the detailed guidance on the relief so that they can include the full benefit of the relief when planning future productions.
“However, it is unlikely that the State Aid approval for the video game relief will be received before 1 April 2013. While it was always acknowledged that obtaining state aid approval for the video games relief might take longer, the video games industry will be disappointed to see a delay in the introduction of the relief. The video games industry bodies have announced their intention to work closely with the Government and the European Commission to obtain approval for the relief as soon as possible.
“The combination of generous tax reliefs and government investment will make the UK an attractive place for film, TV and video game production, allowing UK companies to compete on a level playing field against other countries that already offer incentives such as Ireland, Canada and Hungary.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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