CREC023000 - Qualifying productions: high-end television

High-end television programmes include dramas, comedies听and documentaries. In addition to the main qualifying criteria for TV programmes, they must also meet the slot length and hourly cost conditions.


Meaning of 鈥榙rama鈥�听

Section 1179DF(2) Corporation Tax Act (CTA)听2009听

A听鈥榙rama鈥� is a programme听that:听

  • consists wholly or mainly of a depiction of events

  • the events are depicted wholly or mainly by one or more persons performing, and听

  • the听whole or majority of what is done by the performers听involves听the playing of a role,听whether by speech, acting, singing听or dancing

Dramas may be based on fictional events, or non-fictional events.听

The definition of drama includes comedies, provided they meet the description above.


Meaning of 鈥榙ocumentary鈥�听

Section 1179DF(3) CTA 2009听

A 鈥榙ocumentary鈥� is a programme听that:听

  • depicts real events, places听or circumstances

  • is not a drama, and听

  • is primarily intended to record or inform

Note that the programme听must be 鈥榩rimarily鈥� intended to record or inform. Entertainment programmes which include informative elements that are not the main focus听of the programme听are not treated as documentaries for the purposes of the Audio-Visual Expenditure Credit听(AVEC).听

Where a programme听is a 鈥�docu-drama鈥� it is possible that a programme听may be both a documentary and a drama. A programme听need only fall into one of these categories to meet the criterion听of being of an 鈥榚ligible category鈥�.


Neither drama nor documentary听

Care is needed where the programme听may appear to be neither a drama nor a documentary.听This might be the case where the programme听does not contain听sufficient dramatic scenes to constitute a drama, but the content of the programme听does not attempt听to be objective or factual.听

It is unlikely that a programme听will not constitute听either听a drama or a documentary unless it contains听elements of non-drama. These will typically be excluded programmes in their own right听(CREC022000).


Hourly cost condition听鈥� section 1179DI CTA 2009听

The average core expenditure听(CREC051000) per hour of slot length in relation to the programme听must be at least 拢1听million.听

The slot length is determined听by the commissioning broadcaster and includes time allocated听to advertising. The length of the programme听will therefore often be shorter than the allocated听slot time. For streaming sites and other broadcasters that do not run adverts, the slot length will be the same as the running time.听

The threshold is based on spend per hour. If the slot length is shorter or longer than an hour, the minimum spend is reduced or increased accordingly.听

For example,听a听programme听with a slot length of 45 minutes must have core听expenditure of at least 拢750,000, and a听programme听with a slot length of 2 hours must have听core听expenditure of at least 拢2听million.听

The test takes all core expenditure into account, both UK expenditure and non-UK expenditure.听

Core expenditure听consists听of听expenditure on:听

  • pre-production听

  • principal photography

  • post-production

Where a programme听takes more than one period to complete, the core expenditure requirement will need to be estimated听to determine听if the programme听will qualify as a high-end TV programme. However, it is anticipated听that a production with core听expenditure听over 拢1 million will have adequate budgets and forecasts to be able to estimate this with reasonable certainty.


Slot length condition听鈥� section 1179DI CTA 2009听

The programme听must be commissioned to fill a slot length of听more than 20 minutes听per episode.听

The test is applied on an episode-by-episode basis. If one episode of the programme听has a slot length of 20 minutes听or less, the programme听will not meet the condition even if the average slot length across all episodes is over 20 minutes.听

There will typically be no ambiguity over the commissioned slot length. This will be a matter of fact that can be determined听by the contract and the actual slot length when the programme听is broadcast.听

The slot length includes any time allocated听to advertising. There is no set minimum听amount of time for the actual听running听time听of a programme. There are restrictions in the UK, the EU听and most countries on the maximum permissible length of time that can be devoted to advertising.听