Autumn Statement 2014: New children’s television tax relief

Relief is currently available for high end television production, giving an additional deduction (“enhanceable expenditure”) of up to 80% of qualifying core expenditure or a payable tax credit of 25% of enhanceable expenditure.

Tax relief will be extended to expenditure on children’s television production. From April 2015, eligible companies will be able to reduce their corporation tax liabilities or claim a payable tax credit at a rate of 25% on qualifying production expenditure.

Both the additional deduction and the payable credit will be calculated on UK core expenditure up to a maximum of 80% of the total core expenditure. This change is subject to state aid clearance.

The relief will be based on the amount of qualifying expenditure on children’s television production that is culturally British, estimated using data from OFCOM and the industry.

This relief will provide a further incentive to television production companies to make children’s television programmes in the UK.