The UK is home to some of the world’s most successful animation studios, but it can be difficult to compete with overseas production budgets. One way that business owners are trying to level the playing field is through Animation Tax Relief (ATR). ATR helps generate high-quality animation productions.
What is Animation Tax Relief?
Animation Tax Relief was introduced by the UK government in 2007 to encourage animated movies to be made in the UK. It provides a 25% tax break for qualifying productions, as well as various new grants and funding targeted at animators. The goal is to help the industry grow and make it more globally competitive.
How does Animation Tax Relief work?
Animation Tax Relief was created to help animators in the United Kingdom by offering them a tax break. To qualify, they must have at least 75% of the project’s production costs being spent in the United Kingdom, and they must be working for a qualifying animation producer. If you are eligible for ATR, you may be able to claim back up to 25% of your wage as a cash rebate on your taxes. This can help animators in the UK work with greater ease.
Qualifying for Animation Tax Relief
Qualifying for Animation Tax Relief is a bit tricky. You need to make sure that your studio has less than 25 employees, that you have less than £2 million in turnover, and that the animation work is key to the production of the film. To be considered as an animator, you must work on at least 20% of the production in a year and have an animation qualification.
Tax Relief Amounts
Paragraph: You can get up to 100% tax relief on eligible costs if you spend more than £20,000 per project or 50% tax relief if you spend £10,000 or less.
Animation giants benefiting from ATR
Recently, animator Aardman expressed their thanks for Animation Tax Relief (ATR) because it helped them to keep growing. ATR helps animation companies to offset the significant costs of production with a 20% tax break. It also allows them to keep more of their profits, rather than just having to reinvest in the company.
Conclusion
Animation Tax Relief was introduced in the UK with the purpose of boosting animation production in the country. The UK government is allowing a 25% tax relief on labour costs, up to £20million per qualifying project. This has allowed animators to work on new movies and TV series without being faced with high taxes. Animation Tax Relief has been instrumental in helping the industry grow and create jobs for animators.
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