Friday 26 April 2013

If it's creative and it's culture, there may be tax relief ahead

According to "Tax reliefs for the creative sector", a Department for Culture, Media & Sport Policy Paper (here), the UK government has published revised draft Regulations -- the Cultural Test (Programmes and Video Games) Draft Regulations 2013 (here; explanatory memorandum here)-- setting out the cultural test which a company must pass if it wishes to qualify for relief under the Corporation Tax Act 2009 in respect of high-end television production, animation production and video game development.

An earlier draft of these Regulations was published four months ago with the draft Finance Bill 2013; the current, revised draft Regulations have been amended so as to reflect the results of the government's consultation exercise -- and also to address the concerns of the European Commission, which has approved the relief for TV programmes but is to investigate the relief for video games. As well as amendments to terminology (including the personnel involved in video games development), the changes include an amended method of awarding points and more restrictive rules on the way points must be distributed. Publication of the draft Regulations gives those who are potentially eligible for relief a chance to size up their chances of getting it.

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