Creative sector reliefs prove to be popular – but are they effective? Mike Hayes comments
Recently published statistics from HMRC show the importance and popularity of the tax reliefs for the creative sectors, such as the credits for film, high end TV, animation and theatre. The figures show that in 2016/17, 175 films were made which claimed film tax relief (FTR). The total UK spend on these films was £1 billion, at a cost of £415 million of FTR. For the same period £46 million of theatre tax relief was given, assisting 1,570 productions.
The tax cost of these reliefs is high, but British Film Institute CEO Amanda Nevill has pointed out that the film industry is the UK’s fastest growing sector, supporting over 66,000 jobs. According to Mel Stride, the Financial Secretary to the Treasury, these creative industries employ two million people across the UK.
Tax partner Mike Hayes comments: “Creative sector reliefs are clearly working to benefit the economy and are certainly popular, given the number of ‘big’ films made in the UK. No doubt other sectors will look at this type of government support with envious eyes.”