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Animation, Games & Apps

Animation Tax Relief

Qualifying companies can claim up to 25% of expenditure on R&D animation projects with animation tax relief. Get expert support claiming animation tax credits.

Animation tax relief is available to businesses operating in the UK’s animation industry, producing programmes which are intended for broadcast.

As of 2023, animators in the UK could claim tax relief via the Audio-Visual Expenditure Credit (AVEC), which replaced the high-end TV, animation and children’s TV tax reliefs.

Animation tax relief and the wider AVEC scheme have been introduced by the UK government to boost innovation and facilitate the long-term vision for the nation’s creative industries.

Who qualifies for animation tax relief?

Your animated production can qualify for AVEC if several factors are met, including the following:

  • The programme is certified as British by the British Film Institute (BFI)
  • The production is intended for broadcast or online streaming
  • At least 51% of core production costs were spent on animation
  • At least 10% of core production costs relate to UK-based activities
Animators sitting at desks in the animation industry, focused on their work displayed on computer monitors.

What projects cannot claim animation tax relief?

There are exclusions for companies wishing to apply for AVEC, such as:

  • Advertisement or promotional programmes
  • News, current affairs and discussion programmes
  • Quiz, game, panel and variety shows
  • A programme with elements of competition and contest
A hand is seen writing on a document, with the focus on research and development (R&D) for SMEs. The image depicts active engagement in documenting or analyzing R&D-related information, symbolizing the process of innovation and intellectual exploration within the field.

Qualifying costs for animation tax relief

Core production costs which qualify for tax relief and the AVEC scheme include:

  • Pre-production
  • Principal photography
  • Post-production
  • The delivery of the completed programme
A hand using a calculator with documents laid out on the table, possibly related to research and development (R&D).

When can you claim animation tax relief?

You can claim animation tax relief via HMRC up to one year after your company’s accountancy period filing date. During this time, you may also amend or withdraw your claim.

HMRC has advised it could accept late claims in unforeseen circumstances and would welcome a discussion.

An animator or designer drawing and sketching, involved in the development and creation of graphic characters for animation.

randd’s success in animation tax relief

randd has supported an array of animation and CGI specialists as they seek tax relief.

Amongst our success stories, we assisted Brighton-based Bigman as it received £16,000 in R&D tax credits. Founded in 2010, Bigman specialises in CGI to create innovative animations and technical illustrations.

During its time in operation, Bigman has conducted research and development to identify technological advancements and enhance its in-house capabilities.

With randd’s support, Bigman received the resources required to push boundaries and pursue innovations in virtual reality, 360 video and state-of-the-art animation.

A 3D designer working remotely from home, possibly involved in game design.

Expert support claiming animation tax relief

randd is the market leader in tax relief support, boasting an unparalleled track record in the R&D tax credits market.

On average, we claim back £50,000 for our clients, allowing businesses to make technological advancements and pursue innovation.

Animation is a growing industry in the UK and, with randd uk’s support, your business can cement itself at the forefront with the resources required to succeed.

Contact our team of experts by calling us on 01332 409 711 or emailing claim@randduk.com