CREC022000 - Qualifying productions: television programmes
For a TV programme聽to qualify for an expenditure credit, it must meet the legislative definition of a 바카라 사이트榯elevision programme,바카라 사이트� and also聽the qualifying criteria outlined in section 1179DE of the Corporation Tax Act (CTA) 2009.
Meaning of 바카라 사이트榯elevision programme바카라 사이트�聽
Section 1179DD聽CTA 2009 states:聽
바카라 사이트淭elevision programme바카라 사이트� means any programme聽(with or without sounds) which바카라 사이트�聽
(a)聽聽聽聽 is produced to be seen on television or on the internet, and聽
(b)聽聽聽聽 consists of moving or still images or of legible text or of a combination of those things.聽
If two or more programmes are commissioned together under the same agreement, they are treated as a single programme聽for the purposes of the Audio-Visual Expenditure Credit (AVEC).聽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聽treated as a separate programme聽even if the聽episodes聽form part of the same series.
Qualifying criteria聽바카라 사이트� section 1179DE CTA 2009聽
A TV programme聽is a qualifying TV programme聽for AVEC if it meets the following criteria:聽
it is of an eligible category聽
it is not an excluded programme聽
it is intended for broadcast聽
it is certified as British (see CREC028000)聽
at least 10% of core expenditure on the programme聽is UK expenditure (see CREC029000)聽
If it is聽a high-end TV programme, the programme聽must also meet the slot length and hourly cost conditions聽(see CREC023000).聽Animated programmes and children바카라 사이트檚 programmes do not need to meet these extra conditions.
Eligible categories聽
The eligible categories of TV programme聽are:聽
High-end television (CREC023000): drama (including comedy) or documentary聽
Animation (CREC024000)聽
Children바카라 사이트檚 programme聽(CREC025000)聽
Please see the linked pages for the definition of each type of programme.聽
Animated programmes and children바카라 사이트檚 programmes receive a higher rate of credit than other types of programme聽바카라 사이트� see CREC061300.
Excluded programmes聽
Section 1179DG CTA 2009 lists聽the categories of excluded programme. They are:聽
advertisements or other promotional material聽
news or current affairs programmes or discussion programmes聽
any quiz show, game show, panel show, variety show, chat show or similar entertainment聽
a programme聽that consists of or includes a competition or contest or announces the results of a competition or contest聽
any broadcast of live events or of theatrical or artistic performance given otherwise than for the purpose of being filmed聽
any programme聽produced for training purposes聽
These categories include many types of programme聽which might be argued as being聽a聽documentary or drama,聽but which are not intended recipients of AVEC.聽For example,聽a recording聽of a sporting event might聽be considered to be a documentary in some circumstances but聽will聽not qualify for聽AVEC.聽
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 individuals바카라 사이트� actions. However, it will be a question of fact as to how the footage is used, whether as documentation or otherwise.聽
Some children바카라 사이트檚 programmes may qualify despite including a quiz, game, competition聽or contest 바카라 사이트� see CREC025000.
聽
Meaning of 바카라 사이트榖roadcast바카라 사이트�聽바카라 사이트� section 1179DH CTA 2009聽
바카라 사이트楤roadcast바카라 사이트� means being broadcast on television, or via the internet, to the general public.聽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聽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.聽
The fact that a programme聽is certified as British does not necessarily mean聽it is intended for broadcast. The Department for Culture, Media and Sport can certify programmes that are not so intended.聽
A programme聽may qualify as 바카라 사이트榠ntended for broadcast바카라 사이트� even if the intention is to gain a significant proportion聽of the earnings from broadcast overseas, rather than in the UK (although a British programme聽would normally be expected to be intended for UK broadcast).
Intention聽
The legislation does not specify whose 바카라 사이트榠ntention바카라 사이트� this should be, but at any time there will normally be someone entitled to determine聽how the programme聽is to be exploited. This would generally be聽the person who commissioned it聽바카라 사이트� if a company, the directors of that company聽바카라 사이트� but there may be cases where someone else has a prior claim.聽
It is not necessary for the programme聽to actually be聽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,聽if so, when聽the intention changed).聽
If there is any doubt about the intention, the following factors would count in favour聽of the programme聽being intended for broadcast:聽
a finance plan written on the basis that the programme聽will be broadcast聽
a programme聽of a type commonly broadcast聽
production in a format suitable for broadcast聽
payment to actors and other participants on terms in line with those prevailing for programmes聽
the relevant person can demonstrate聽that, when television production activities began, there was an intention to seek a contract for broadcast聽of the programme聽
Where the production is commissioned by a film company or聽is clearly more suited to some distribution channel other than television or the internet, the broadcast condition聽may not be met. This will be the case even if the programme聽is eventually shown on television.聽For example, where a programme聽is intended for sale as a digital download聽initially and is ultimately shown聽on television, the condition would still not be met.
Broadcast condition not met聽
A TV programme聽can only be a qualifying programme聽for AVEC for a particular accounting period if, at the end of that period, it is intended for broadcast.聽
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.聽
If a programme聽is not intended for broadcast at the end of an accounting period, it cannot qualify for聽AVEC聽as a TV programme聽in respect of that period or any subsequent聽accounting period (but credits given in previous聽periods are not clawed back). However, if, at the end of the period, the programme聽is intended for theatrical release instead, it may qualify as a film聽(see CREC026000).聽
It may not be readily apparent聽whether a feature-length production聽is intended for broadcast on television as a programme聽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聽and the production is treated as a film.聽