High-end TV and animation tests - Draft cultural tests published
Pending Royal Assent for the Finance Bill 2013 (expect it in July 2013), the existence of the high-end TV and animation tax credits is somewhat quantum. The reliefs are there (they are available from
Pending Royal Assent for the Finance Bill 2013 (expect it in July 2013), the existence of the high-end TV and animation tax credits is somewhat quantum. The reliefs are there (they are available from 1 April 2013) and not there (the legislation has not yet received royal assent) at the same time.
To deal with this situation without resorting to tachyonic communication techniques, the DCMS and BFI will, for the time being, give comfort letters that the reliefs will be available when they retrospectively pop into existence on Royal Assent. Hurrah.
The draft cultural tests which will be used to give these comfort letters have now been published, and you can see them here. They broadly say what we thought they would say (and generally reflect what has already been disclosed by HMRC). The changes which have been made are described in the explanatory note in the following terms (to the extent relating to TV):
"...further improvements were made to ... how points are awarded where there is more than one lead practitioner involved in the making of a programme. The Department also agreed to amendments sought by the European Commission in respect of a minimum level of cultural content to be achieved in Section A and an adjustment to how indeterminate locations and characters are treated in the cultural tests for animation... "
Sadly, the video games relief has been put into limbo by the EU Commission (see our earlier blog entry) so the video games cultural test and changes to it are currently of academic interest only, and this is not an academic blog (in the tax context).
To deal with this situation without resorting to tachyonic communication techniques, the DCMS and BFI will, for the time being, give comfort letters that the reliefs will be available when they retrospectively pop into existence on Royal Assent. Hurrah.
The draft cultural tests which will be used to give these comfort letters have now been published, and you can see them here. They broadly say what we thought they would say (and generally reflect what has already been disclosed by HMRC). The changes which have been made are described in the explanatory note in the following terms (to the extent relating to TV):
"...further improvements were made to ... how points are awarded where there is more than one lead practitioner involved in the making of a programme. The Department also agreed to amendments sought by the European Commission in respect of a minimum level of cultural content to be achieved in Section A and an adjustment to how indeterminate locations and characters are treated in the cultural tests for animation... "
Sadly, the video games relief has been put into limbo by the EU Commission (see our earlier blog entry) so the video games cultural test and changes to it are currently of academic interest only, and this is not an academic blog (in the tax context).