CREC022000 - Qualifying productions: television programmes

For a TV programme听to qualify for an expenditure credit, it must meet the legislative definition of a 鈥榯elevision programme,鈥� and also听the qualifying criteria outlined in section 1179DE of the Corporation Tax Act (CTA) 2009.


Meaning of 鈥榯elevision programme鈥�听

Section 1179DD听CTA 2009 states:听

鈥淭别濒别惫颈蝉颈辞苍 programme鈥� means any programme听(with or without sounds) which鈥�听

(a)听听听听 is produced to be seen on television or on the internet, and听

(b)听听听听 consists of moving or still images or of legible text or of a combination of those things.听

If two or more programmes are commissioned together under the same agreement, they are treated as a single programme听for the purposes of the Audio-Visual Expenditure Credit (AVEC).听For example, multiple episodes that are commissioned at the same time are treated as a single programme, but a separately commissioned episode or batch of episodes is听treated as a separate programme听even if the听episodes听form part of the same series.


Qualifying criteria听鈥� section 1179DE CTA 2009听

A TV programme听is a qualifying TV programme听for AVEC if it meets the following criteria:听

  • it is of an eligible category听

  • it is not an excluded programme听

  • it is intended for broadcast听

  • it is certified as British (see CREC028000)听

  • at least 10% of core expenditure on the programme听is UK expenditure (see CREC029000)听

If it is听a high-end TV programme, the programme听must also meet the slot length and hourly cost conditions听(see CREC023000).听Animated programmes and children鈥檚 programmes do not need to meet these extra conditions.


Eligible categories听

The eligible categories of TV programme听are:听

  • High-end television (CREC023000): drama (including comedy) or documentary听

  • Animation (CREC024000)听

  • 颁丑颈濒诲谤别苍鈥檚 programme听(CREC025000)听

Please see the linked pages for the definition of each type of programme.听

Animated programmes and children鈥檚 programmes receive a higher rate of credit than other types of programme听鈥� see CREC061300.


Excluded programmes听

Section 1179DG CTA 2009 lists听the categories of excluded programme. They are:听

  • advertisements or other promotional material听

  • news or current affairs programmes or discussion programmes听

  • any quiz show, game show, panel show, variety show, chat show or similar entertainment听

  • a programme听that consists of or includes a competition or contest or announces the results of a competition or contest听

  • any broadcast of live events or of theatrical or artistic performance given otherwise than for the purpose of being filmed听

  • any programme听produced for training purposes听

These categories include many types of programme听which might be argued as being听a听documentary or drama,听but which are not intended recipients of AVEC.听For example,听a recording听of a sporting event might听be considered to be a documentary in some circumstances but听will听not qualify for听AVEC.听

For documentaries concerned with the performing arts and sports, it might be that elements of theatrical production or live events are used to document events or illustrate individuals鈥� actions. However, it will be a question of fact as to how the footage is used, whether as documentation or otherwise.听

Some children鈥檚 programmes may qualify despite including a quiz, game, competition听or contest 鈥� see CREC025000.

听

Meaning of 鈥榖roadcast鈥�听鈥� section 1179DH CTA 2009听

鈥楤roadcast鈥� means being broadcast on television, or via the internet, to the general public.听Broadcast via the internet includes video on demand content held on streaming sites and social media. It does not include content which is only available for download. If a programme听is restricted to a particular audience, such as training videos only available to employees of certain companies, it is not broadcast to the general public.听

The fact that a programme听is certified as British does not necessarily mean听it is intended for broadcast. The Department for Culture, Media and Sport can certify programmes that are not so intended.听

A programme听may qualify as 鈥榠ntended for broadcast鈥� even if the intention is to gain a significant proportion听of the earnings from broadcast overseas, rather than in the UK (although a British programme听would normally be expected to be intended for UK broadcast).


Intention听

The legislation does not specify whose 鈥榠ntention鈥� this should be, but at any time there will normally be someone entitled to determine听how the programme听is to be exploited. This would generally be听the person who commissioned it听鈥� if a company, the directors of that company听鈥� but there may be cases where someone else has a prior claim.听

It is not necessary for the programme听to actually be听broadcast on television or via the internet to meet this condition. However, if it was not eventually broadcast, the question arises of whether it was ever so intended (and,听if so, when听the intention changed).听

If there is any doubt about the intention, the following factors would count in favour听of the programme听being intended for broadcast:听

  • a finance plan written on the basis that the programme听will be broadcast听

  • a programme听of a type commonly broadcast听

  • production in a format suitable for broadcast听

  • payment to actors and other participants on terms in line with those prevailing for programmes听

  • the relevant person can demonstrate听that, when television production activities began, there was an intention to seek a contract for broadcast听of the programme听

Where the production is commissioned by a film company or听is clearly more suited to some distribution channel other than television or the internet, the broadcast condition听may not be met. This will be the case even if the programme听is eventually shown on television.听For example, where a programme听is intended for sale as a digital download听initially and is ultimately shown听on television, the condition would still not be met.


Broadcast condition not met听

A TV programme听can only be a qualifying programme听for AVEC for a particular accounting period if, at the end of that period, it is intended for broadcast.听

Note: this differs from the broadcast condition under Television Tax Relief (Part 15A CTA 2009), which was tested at the outset of production rather than for each accounting period.听

If a programme听is not intended for broadcast at the end of an accounting period, it cannot qualify for听AVEC听as a TV programme听in respect of that period or any subsequent听accounting period (but credits given in previous听periods are not clawed back). However, if, at the end of the period, the programme听is intended for theatrical release instead, it may qualify as a film听(see CREC026000).听

It may not be readily apparent听whether a feature-length production听is intended for broadcast on television as a programme听or intended for theatrical release as a film. There may be more than one contingency plan for exploitation of the production. Where both conditions are met, the theatrical release condition takes precedence听and the production is treated as a film.听