HMRC pays out £2.4bn in incentives to creative industries
New statistics published today show that HMRC paid out £2.40bn in creative industries tax reliefs and expenditure credits for the year to 31 March 2024 – a 10% increase from the previous year (£2.19bn).
High-end TV reliefs continue to dominate the picture with claims at record levels of £1.1bn. In fact, film and TV related incentives represent over 72% of all amounts paid, followed by video games incentives, with payouts increasing by 12% to £327m.
Theatre tax relief saw another year of strong growth, up 65% to £261m, which is now higher than pre-Covid levels. While the reliefs paid out for animations, children’s TV, orchestras and museums and galleries account for a small proportion of the total, the continued robust growth shows the importance of these reliefs to those sectors.
Will Simpson, Creative Sector Director at RSM UK said: “These results are very encouraging and despite headwinds in the some of the creative sectors globally, the figures really help to demonstrate the UK’s ability to attract inward investment and produce world-class quality output.
“The UK is a world leader in the film and video games industry, but these sectors continue to come up against significant challenges, including having to adapt to changing consumer habits. As a result, the tax incentives play a vital role in maintaining the UK’s competitiveness and appeal to investors.
“The reliefs are a key driver behind the remarkable success story of the UK’s creative industries. Recent enhancements to the incentives for animations and children’s TV demonstrate just how quickly well-designed, targeted support can deliver a positive impact on a particular sector.”