UK creative industries secure record 2.4bn in tax reliefs

"The UK's creative industries received a record £2.4 billion in tax reliefs and expenditure credits in the 2023/24 financial year, highlighting both the sector's resilience and its growing contribution to the economy. Figures from HMRC show a 10 per cent increase on the previous year, underlining the government's recognition of the sector's importance to growth, investment and jobs. High-end television productions were once again the single largest beneficiary, claiming £1.1 billion - almost half of the total - as streaming platforms continued to drive investment in British content. Film Tax Relief accounted for £534 million, slightly lower than last year, reflecting the shift of major releases towards streaming."

"Theatre and orchestral companies enjoyed a sharp rise in support, with claims up 65 per cent and 39 per cent respectively. The uplift was driven by enhanced government relief rates, which have now been made permanent. Meanwhile, the UK's thriving video games industry continued its upward trajectory, with reliefs climbing 12 per cent. Some £8 million has already been paid out in Video Games Expenditure Credits, reinforcing the UK's position as a global hub for game development. Looking ahead, April 2025 will see the launch of the new Independent Film Tax Credit, designed to revitalise British cinema by offering additional support for smaller, independent productions."

"HMRC's latest statistics show the Government recognises how important the UK's creative industry is. The sector has received a record £2.4 billion in tax relief, reflecting strong inward investment and the continued success of streaming content. From TV to theatre, orchestras and video games, these reliefs are helping to ensure the UK remains a global creative leader."

UK creative industries received £2.4 billion in tax reliefs and expenditure credits in 2023/24, a 10% increase on the previous year. High-end television productions claimed £1.1 billion, nearly half of the total, while Film Tax Relief accounted for £534 million amid a shift toward streaming. Theatre and orchestral claims rose 65% and 39% respectively after enhanced relief rates were made permanent. Video games reliefs climbed 12%, with about £8 million paid in Video Games Expenditure Credits. A new Independent Film Tax Credit launches in April 2025 to support smaller independent productions and bolster the sector's growth.

Read at Business Matters