HMRC tax reliefs to creative industries rise by 16% to £2.2bn

HMRC paid out £2.2bn to creative industries through tax reliefs in the year ended 31 March 2023, up by 16% from the £1.9bn paid the prior year.This increase was mainly driven by rises in the amount of high-end TV tax reliefs, which rose by 13% to £1.1bn, an area that continues to represent half of all creative sector payments made.  

It was also boosted by an increase for theatre tax relief, which soared 171% to £178m. Elsewhere, video games relief rose by 10% to £282m.

Commenting on HMRC’s latest statistics, RSM said the results were “good news for all sectors and shows the importance these reliefs have in growing and sustaining a supportive ecosystem in the UK for the creative industries”. 

Will Simpson, creative sector director at RSM UK said: “With high-end TV continuing to show such strong results, these figures demonstrate the UK’s ability to attract international studios to produce high quality content here, helped by our incentives and world class facilities and talent.

“The UK is recognised as a heavyweight in the video games industry, but the sector has faced significant headwinds during the last 12 months as businesses adapt to changes in market conditions. With all these challenges the tax incentives have become an increasingly important means of attracting investment to the UK.” 

He added: “These creative industry incentives continue to be a huge success story for the UK, and it’s been good to see the new government extoll the importance of the creative sector to the whole country. At a time when consumer spending has tightened and budgets are being cut, it’s even more important to demonstrate stability to these reliefs to attract inward investment and support the sector.”