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ATR Introduced 1st April 2013

Animation Tax Relief

Animation Tax Relief is available to animation production companies subject to Corporation Tax in the UK. Similar to High-End Television Tax Relief, it provides a tax credit mechanism for qualifying production costs.

Established under Finance Act 2013 (Schedule 16)

April 2024 Update: This relief is now part of the Audio-Visual Expenditure Credit (AVEC) scheme, offering enhanced rates of 34-39% on qualifying UK expenditure.

Eligible Entities

  • ✓ Animation production companies incorporated in the UK
  • ✓ Companies with a UK permanent establishment subject to Corporation Tax

Qualifying Criteria

  • 1. Must obtain a Cultural Certificate from the BFI Certification Unit
  • 2. At least 51% of core costs must be spent on animation
  • 3. At least 10% of core costs must relate to UK activities

Cultural Test Requirements

The BFI Cultural Test is points-based, assessing whether an animation qualifies as British.

16/31
Minimum points required

Assessment Categories

  • * Cultural content
  • * Cultural contribution
  • * Cultural hubs
  • * Personnel

Core Expenditure

Eligible for tax relief enhancement

  • ✓ Pre-production costs
  • ✓ Principal photography/animation costs
  • ✓ Post-production costs

Non-Core Expenditure

Not eligible for enhancement

  • ✗ Development expenditure
  • ✗ Marketing and distribution costs
  • ✗ Financing costs

Speak With a Specialist

ATR, grants, maybe both - let's figure out what makes sense for you. It's free to find out.

Check Your Eligibility

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