Film, TV, games and theatre: the creative tax credits in 2026, and what they are worth

Few countries back creative production as generously as the UK, and since 2024 that support has changed shape. Film, television, animation and video games are now supported by expenditure credits: a taxable credit worked out from what the company spends in the UK. Theatre, orchestras and museum and gallery exhibitions keep reliefs of their own, at rates made permanent from April 2025.

How the expenditure credits work

The production company claims the credit in its Company Tax Return. It is worked out on qualifying expenditure, which is the lower of 80% of total core costs and the core costs that relate to activities in the UK. Core costs are what is spent on pre-production, principal photography and post-production, or for a game on designing, producing and testing it. At least 10% of them must relate to the UK.

The credit is itself taxable at the main rate of Corporation Tax. It is used first to pay the company’s Corporation Tax, then any other tax it owes, and it can be surrendered to group companies. Whatever is left is paid out. For a production company that makes a loss, as most do while they are making something, that turns the credit into cash rather than a deduction it may never use.

Who can claim

• The company must be the production company: responsible from pre-production to delivery, actively involved in decisions, and negotiating, contracting and paying for rights, goods and services itself.
• Films, TV programmes and games must be certified as British by the British Film Institute, through the cultural test or an official co-production treaty.
• Films must be intended for cinema release, TV programmes for broadcast (streaming counts) and games for supply to the public. Games made for advertising or gambling do not qualify.
• High-end TV dramas, comedies and documentaries need average core costs of at least £1 million for each hour of slot length, in episodes of more than 20 minutes.

The independent film rate

Films certified as low-budget by the BFI can claim 53% on up to £15 million of core costs. To qualify, a film must have begun principal photography on or after 1 April 2024, have a UK writer or director or be an official co-production, and have core costs below £23.5 million. Visual effects costs in films and high-end TV earn 39% and are not limited by the 80% cap.

Deadlines and paperwork

A claim can be made, changed or withdrawn up to two years after the end of the accounting period it relates to. Company Tax Returns sent on or after 6 April 2026 that claim any creative relief must include the CT600P supplementary page, and each claim needs an additional information form: the BFI certificate, core costs split between UK and non-UK, a breakdown by category and details of any connected party transactions.

Film Tax Relief, High-End Television, Animation, Children’s Television and Video Games Tax Relief cease from 1 April 2027. If a production is still claiming under one of them, plan its move to the expenditure credits now.