Creative Sector Tax Reliefs and Audio-Visual Expenditure Credit (AVEC)
Creative Sector Tax Reliefs and Audio-Visual Expenditure Credit (AVEC)
Creative Sector Tax Reliefs and Audio-Visual Expenditure Credit (AVEC)
The UK’s creative sector is a global leader in innovation and cultural output. To support its growth, the government provides a range of Creative Sector Tax Reliefs (CSTRs), enabling companies to claim back on core production costs and reinvest in future projects. While these reliefs can deliver substantial financial benefits, the rules are complex and many businesses are unaware they even qualify.
At Azets, our team helps creative companies unlock the full value of these incentives. We simplify the claims process, ensure compliance with HMRC, and provide tailored advice to maximise your tax savings.
What are Creative Sector Tax Reliefs?
Creative Sector Tax Reliefs are government-backed incentives designed to reduce the cost of producing culturally valuable content in the UK. From January 2025, a new regime, the Audio-Visual Expenditure Credit (AVEC), replaced several older schemes, consolidating them into one clearer structure.
AVEC now covers:
- AVEC for Film
- AVEC for High-End Television
- AVEC for Children’s Television
- AVEC for Animation
This new framework replaces the former Film Tax Relief (FTR), High-End Television Tax Relief (HTR), Children’s Television Tax Relief (CTR), and Animation Tax Relief (ATR). AVEC operates as an expenditure credit, bringing more transparency and potentially higher rates for qualifying production costs.
Other CSTRs remain available and unaffected by AVEC, including:
- Theatre Tax Relief (TTR)
- Orchestra Tax Relief (OTR)
- Museums and Galleries Exhibition Tax Relief (MGETR)
- Video Games Tax Relief (VGTR)
Each of these reliefs plays a vital role in making UK-based creative production more affordable and competitive.
Benefits of Creative Sector Tax Reliefs
The financial impact of CSTRs can be transformative for creative businesses. They can help to:
- Boost cash flow by reducing tax liabilities and freeing up working capital.
- Expand production capacity by creating more financial flexibility for ambitious projects.
- Attract and retain talent by allowing reinvestment in skilled creative professionals.
How Azets can support your claim
The eligibility requirements and application process for CSTRs and AVEC can vary significantly depending on the type of production. Our specialist team works closely with you to assess eligibility, prepare robust claims, and ensure compliance with HMRC’s latest requirements.
We provide:
- A holistic and joined-up approach, with Creative Sector Relief specialists working alongside our Corporate Tax Compliance team.
- A local team delivering your claim, backed by Azets’ national infrastructure. [Insert number of creative sector specialists if available.]
- Flexible fee options including contingent fees (for non-audit clients), fixed fees, and phased fees.
- Access to a Tax Investigation Service which covers the cost of HMRC enquiries you may face in the future.
- A personal, approachable service, taking the time to understand your wider business objectives.
Our team has deep sector expertise and the experience to ensure your Creative Sector Tax Relief or AVEC claim is maximised while keeping the process smooth and efficient.