Creative Industry Tax Reliefs
The government have set up tax relief schemes for certain industries to help them survive and grow.
We help our clients maximise these claims.
Some industries face very harsh competition and cash pressures. To make sure the UK is able to compete on the world stage the Government has tried to help the most needy of these sectors.
The most common ones are:
Audio-Visual Expenditure Credit (AVEC)
AVEC is the new system for film, high-end TV, animation and children’s TV. If your project passes the UK BFI cultural test, you can claim a payable credit on qualifying production spend. Unlike the old tax reliefs, this credit can generate cash even when a company is loss-making
Video Games Expenditure Credit (VGEC)
VGEC replaces the old Video Games Tax Relief and is open to UK developers whose games meet the cultural test. It allows studios to claim a credit on eligible design, development and production costs. This credit not only reduces the financial pressure of long development cycles but also helps smaller and independent studios keep projects moving when revenues are still months away.
R&D tax credits
The R&D scheme is more broad in that it can be applied to any industry, but more specifically you must be able to demonstrate that you are working on something innovative and how. The tax savings and refunds are worth taking a look.
Theatre Tax Relief (TTR)
Theatre Tax Relief supports UK theatre companies producing live performances, including plays, musicals and touring productions. Eligible companies can claim a payable tax credit on qualifying production costs, improving cashflow during long rehearsal and run periods.
Orchestra Tax Relief (OTR)
Orchestra Tax Relief is designed for orchestras and live musical ensembles performing concerts for the public. It allows eligible organisations to claim a payable tax credit on qualifying rehearsal, performance and production costs.
Museums and Galleries Exhibition Tax Relief (MGTR)
Museums and Galleries Exhibition Tax Relief supports the creation of temporary or touring exhibitions, including design, curation and installation costs. Eligible organisations can claim a payable tax credit, helping fund ambitious exhibitions without relying solely on grants or donations.
Frequently Asked Questions about creative industry tax reliefs
Creative Industry Tax Reliefs are UK government incentives designed to support sectors such as film, TV, animation, video games, and innovative businesses.
The most common schemes include:
- Audio-Visual Expenditure Credit (AVEC)
- Video-Games Expenditure Credit (VGEC)
- R&D tax credits
Other niche schemes may apply depending on the nature of your work.
AVEC is the replacement for older film and TV tax reliefs. It applies to:
- Film
- High-end TV
- Animation
- Children’s TV
If your project passes the BFI cultural test, you can claim a payable credit on qualifying production spend, even if your company is loss-making.
VGEC replaces the former Video Games Tax Relief and is available to UK video game developers whose games pass the cultural test. It allows claims on qualifying design, development, and production costs.
R&D tax credits apply where your business is:
- Solving technical or scientific uncertainty
- Developing innovative processes, software, or products
- Creating new or improved methods, not just routine work
Many creative and digital businesses qualify without realising it.
Specialist advice is critical. Careful structuring is required to avoid double-claiming while maximising overall relief.
The fastest way is a free consultation, where we assess your activities, structure, and past accounts to identify which reliefs apply and estimate potential value.