HM Treasury consults on new additional tax relief for visual effects
HM Treasury has published a consultation on additional tax relief for visual effects, following the Spring Budget.
The consultation invites comments about the proposed design and application of the new policy, stating that draft legislation will be published in the summer. In advance of that, the Government will work with the BFI to develop a process for accrediting visual effects costs as ‘genuine and incurred in the UK’. The draft legislation will also include a draft definition of ‘visual effects’ which industry is invited to comment upon. The consultation states that the Government will use the BFI’s definition as a “starting point for the legislation” which is as follows:
the digital alteration of a film’s (or high-end programme’s) images. This will include the following activities carried out as part of Asset Build, Shots and Facility Overhead, but not those activities relating to principal photography: Pre-visualisation, Concept Design, Computer Generated Images (CGI), Character/Creature Animation, Colour Correction, 2D Compositing, 3D Animation, 3D Modelling, Software Development, Digital Intermediate, Stereo Conversion, Virtual Sets/Studio Motion Capture, Digital Matte Painting, Lighting and Rendering, Images as well as supervision, support and management of the artists and individuals engaged in this activity”.
The consultation will close on 22 May 2024, and the Government particularly invites comments from “visual effects companies and film and high-end TV production companies” as well as accountants, tax advisers and lawyers.