High-End TV Tax Relief

Under the High-End television tax relief definition, a co-production is a programme produced under the terms of an international co-production agreement between two or more countries or authorities.

In the UK, such programmes are made under:

• a bilateral co-production treaty, or
• the European Convention on Cinematic Co-production.

The advantage of a programme being made as an official co-production is that each producer can access the support within their respective countries, including tax relief where available.

To benefit from High-End television tax relief, there must also be;

• A UK production company responsible for all UK production elements from beginning to completion.
• Corresponding production companies in the other co-producing party countries.
• The minimum UK spend must be at least 10% of the programme’s total core expenditure.

If you want to claim High-End Television Tax Relief, your high-end television programme must be certified as British. You must pass the British Film Institute (BFI) cultural test to receive this certification.

To pass the BFI cultural test, complete an online application form for each high-end television programme you want to claim HTTR. If the programme is intended as a series, you can make one application to cover all episodes within the series. The BFI will assess your application and award points based on the cultural content of the programme, its cultural contribution, its cultural hubs, and its cultural practitioners. Each high-end television programme must score 18 out of 35 points to pass the test.

Myriad Associates employs BFI application specialists who can help you pass this test. Contact us for advice. 

The cultural test for high-end television programmes is set out in The Cultural Test (Television Programmes), but for more information, feel free to contact us.

In addition to completing an application form for each high-end television programme, a Statutory Declaration to certify the truth of the particulars in the application is also required.

The Statutory Declaration can be made before a practising solicitor, a general notary, a Justice of the Peace, or any other officer authorised by law to administer a statutory declaration under the Statutory Declaration Act 1835.

An Accountant’s report is required if an application for a final certificate relies upon points in Section C and/or Section D of the cultural test. The Accountant’s Report must be prepared by a person eligible for appointment as a company auditor under Section 1212 of the Companies Act 2006.

The Accountant's Report is required when an application claims points in Section C and/or Section D.

The purpose of the Accountant's Report is to verify the total and UK expenditure of the work in Section C and the nationality or residence of all persons in Section D.

The Accountant's Report must be prepared by a person eligible for appointment as a company auditor under section 1212 of the Companies Act 2006.

An Accountant's Report can cost between £500 and £2,000 per application, depending on the programme's costs and the number of applications you submit.

The BFI cultural test regulations require you to make a statutory declaration which states that the information you’ve given in your application is accurate.

A statutory declaration is required for both the Interim and Final certifications.

The statutory declaration must be made either before a practising solicitor, general notary, Justice of the Peace or an officer authorised by law to administer a statutory declaration under the Statutory Declaration Act 1835.

Non-core high-end television programme expenditure relates to initial design stage activities or commercial exploitation of the programme.

For example, initial concept artwork used to establish commercial viability is not core expenditure and is not eligible for HTTR.  Marketing a high-end television programme isn’t classed as development expenditure and is not, therefore, a core expenditure.

Ineligible expenditures include entertaining, publicity, promotion, audit fees, interest, completion bonds and other forms of insurance.

The amount of High-End Television Tax Relief (HTTR) to which a Television Production Company (TPC) is entitled in respect of a high-end television programme trade is determined by the amount of core expenditure related to activity undertaken in the UK.

Where a television programme is partly produced in the UK and partly outside of the UK, it will follow that some goods and services may be non-UK. In such cases, it will be necessary to apportion the relevant core expenditure between UK and non-UK expenditure.

This applies to goods and services provided throughout core expenditure stages. It applies to expenditures incurred during pre-production, principal photography and post-production.

The apportionment method is not fixed and can be determined on a case-by-case basis. The key criterion is that it must be done fairly and reasonably.

There will often be more than one ‘fair and reasonable’ basis. The requirement is not that the apportionment must be made using the fairest and most reasonable basis but simply that it must be made on a fair and reasonable basis.

Contact the HTTR team today.

High-End Television Tax Relief (HTTR), is a creative industry tax relief incentive, funded by the UK government.

HTTR supports UK television production companies by offering them a tax rebate against the money they spend on the pre-production, principal photography and post-production of a new television programme.

High-End Television Tax Relief is worth up to 20% of the core production costs of a television programme. Television production companies can claim HTTR on whichever is lower:

• 80% of the total core expenditure.
• The actual UK core expenditure incurred.

If the television programme is profitable, the High-End Television Tax Relief can be used to reduce a Corporation Tax bill. If the television programme makes a loss, claimants can receive a cash payment from HMRC at a rate of 25%.

You can claim High-End television tax relief on your programme if;

• The British Film Institute (BFI) has certified it as British. This is achieved via a cultural test completed online.
• The television programme is intended for broadcast, which includes streaming online, at the commencement of production activities.
• The programme is a drama, comedy or documentary with an average core expenditure of at least £1m per hour and a slot length of over 30 minutes.
• At least 10% of the core costs relate to activities in the UK.

For tax relief, a television programme is defined as any programme (with or without sounds) which;

• is produced to be seen on television (including the internet) and
• consists of moving or still images or legible text or a combination of those things

There is a list of excluded programmes. If your programme falls into one of these categories, it does not qualify for the animation tax relief:

• Advertisements or other promotional material.
• News or current affairs programmes or discussion programmes.
• Any quiz show, game show, panel show, variety show, chat show or similar entertainment.
• A programme that consists of or includes a competition or contest or announces the results of a competition or contest.
• A children’s programme may consist of or include a competition or contest as long as the total prizes do not exceed £1,000. As a series of programmes commissioned together constitute a single programme, this limit will apply to the series. 
• Any broadcast of live events or of theatrical or artistic performance given otherwise than for the purpose of being filmed.
• Any programme produced for training purposes.