Update on the UK Tax Credit for Animation
Many thanks to Harbottle & Lewis for allowing us to reproduce their latest report on the UK tax credit for animation:
Following several months of consultations the Government has now published draft legislation for the much heralded tax relief for animation (“the Relief“) which will come into effect in the Budget in April 2013.
The Benefits of the Relief
The Relief will provide animation producers with either an enhanced tax relief (achieved via an additional deduction in its corporation tax calculation) or a payable tax credit. The payable tax credit will be 25% of qualifying expenditure, subject to a cap of 80% of such expenditure (giving an effective rebate of 20% of relevant spend) or an additional deduction from their corporation tax calculation of 100% of enhanceable expenditure. This is on a par with the existing film tax relief and amongst the most generous in the world.
read the full details and News here!