Aug 29, 2023

A record amount of tax relief was paid out to companies in the creative sector, with £1.66 billion paid out in 2021/22.

This figure was up by 54% from £1.06bn in 2020/21, although this period saw a reduction in live productions due to Covid lockdowns.

High-end TV relief largely drove the increase, which increased by 131% to £829 million and now represents half of all creative sector payments, made up by 475 claims.

It is the first time the amount paid out in relief for high end TV relief has overtaken the amount claimed for film tax relief, reflecting significant investment from streaming services in series like Bridgerton and Ted Lasso.

Film relief accounted for 31% of payments, with £517m paid out for 770 different projects, although this lags behind pre-Covid figures of £627m.

Meanwhile, claims for video games tax relief (VGTR) fell by 6% in the last tax year from £201m to £189m - the first time the figure has dropped since it was introduced in 2014.

Dr Richard Wilson, CEO of the Independent Game Developers' Association, said:

"The latest data from the Government shows that video games tax relief VGTR is helping medium-sized and larger game studios to create bigger production games.

"VGTR also helps to encourage foreign direct investment into the UK, which is important for the growth of the UK games industry, and to generate further employment in the sector."

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