U.K. Looks to Boost Animated Film with Tax Relief

The U.K. government has unveiled a new tax relief program to boost the production of animated films.

The tax changes come alongside the Audio-Visual Expenditure Credit (AVEC), which has been increased to 39 percent from 33.3 percent. The initiatives follow the release of the Creative Industries Sector Vision plan last month to boost the creative industries by an extra £50 billion by 2030.

Victoria Atkins, Financial Secretary to the Treasury, noted: “We want the U.K. to be the best place to start and grow a business, and while we have the lowest corporation tax rate in the G7, we are not complacent. The changes we are making are about backing businesses to innovate and grow the U.K. economy, creating good jobs across the country.”

As part of the new legislation, AVEC will replace the current film, high-end TV, animation and children’s TV tax reliefs. Animation and children’s TV will be eligible for a rate of 39 percent. Animated theatrical films will now be eligible alongside TV programs.