BUDGET l 15 March 2023 10 Film, TV and video games reliefs Refundable expenditure credits will replace the film, TV and video games tax reliefs. An audio-visual expenditure credit will cover the four existing film and TV tax reliefs. The existing specific eligibility criteria of each relief will be preserved. There will also be a video games expenditure credit. • Video games, film and high-end TV will have a rate of 34%. • Animation and children’s TV will have a rate of 39%. The expenditure credits will be calculated directly from qualifying expenditure instead of being an adjustment to the company’s taxable profit as under the existing regime. The eligibility requirements for the video games expenditure credit will require 10% of expenditure to be on goods and services that are used or consumed in the UK. Companies will be able to claim the credits for accounting periods ending on or after 1 January 2024. The current tax reliefs will close to new productions from 1 April 2025. Theatres, orchestras, and museums and galleries The current rates for theatre tax relief (TTR), orchestra tax relief (OTR) and museums and galleries exhibitions tax relief (MGETR) will be extended for two years, with TTR and MGETR remaining at 45% (for non-touring productions) and 50% (for touring productions). OTR rates will remain at 50%. The MGETR ‘sunset clause’ will be extended until March 2026. From 1 April 2024, the definition of qualifying expenditure will change to ‘expenditure on goods and services that are used or consumed in the UK’ and the eligibility requirement for the reliefs will change to require a minimum 10% of expenditure to be on ‘goods and services used or consumed in the UK’. > THINK AHEAD Dividend tax allowance will fall from 6 April 2023 and again in April 2024. You may be able save tax if your company pays you a dividend in the current tax year.
RkJQdWJsaXNoZXIy MjM4MA==