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Creative sector tax reliefs: consultation

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HM Treasury is consulting on the proposed design of corporation tax reliefs to help maintain the UK’s status as ‘a world leader at producing animated programmes, high-end television and video games’. The reliefs would be among the most generous in the world, the Treasury said.

Budget 2012 announced that reliefs would be introduced in April 2013, subject to state aid approval and following consultation, ‘as part of a new ambition to make the UK the technology hub of Europe’.

Exchequer Secretary David Gauke said in a foreword to last week’s consultation paper: ‘The film tax relief shows how targeted support for innovative, highly skilled and mobile industries can make a real difference not only in terms of promoting economic growth, but also in terms of promoting British culture and the way the UK is viewed internationally. The scheme has been highly successful since its introduction in 2007, supporting £5bn of investment into almost 600 British films.

‘Like the film tax relief, the aim of the reliefs for animation, high-end television and video games is to provide tax reliefs that encourage investment into production in a way that ensures the sustainability of these industries and provides value for money for the British taxpayer.’

Comments are invited by 10 September 2012. A separate consultation on the design of ‘cultural tests’ for the new reliefs will take place in the autumn.