The Department of Culture, Media and Sports has issued a consultation on the “cultural tests” UK animation, video game and TV companies will have to pass to get tax relief.
Tax relief will be awarded on a points system that measures a company’s “cultural” importance to the UK.
The criteria includes:
- Cultural content (British or European) - For animation and video games the measure will be based, among other things, on whether the game is set in the UK/EEA [European Economic Area], or a fictionalised representation of this, or a place in the world that cannot be determined. For “high-end” TV this aspect will include whether the production is set in the UK or an EEA area
- Cultural contribution - for those elements of the production which demonstrate British creativity, British heritage or cultural diversity
- Cultural hubs - measuring the use of the UK’s animation making facilities, video games-making facilities, or high end TV-making facilities
- Cultural practitioners - measuring the use of UK or EEA personnel with creative input to the cultural value of animation, video games, or high-end TV
The test will be passed if 16 points are achieved from a possible total of 30 (for video games) or 31 (for animation and “high end TV”).
The proposed tax relief, announced in the March Budget, is intended to make the UK a more attractive location for the production of animation, high-end TV and video games.
The deadline for responses to the consultation is 29 October.