Chris Sanger, EY’s Head of Tax Policy, comments on relief for the creative industries:
“Today’s reform of the creative industries tax reliefs into expenditure credits will bring welcome certainty to a sector that has responded well to the aspirations of previous Chancellors. The creative sector tax reliefs have traditionally been the poster child for effective tax incentives, with each £100 of tax relief in 2019 generating a return on investment of £644 in gross value add.
“With the imminent arrival of the 15% Global Minimum Tax, applying from the start of next year, the effect of these credits could have been undermined. The Chancellor’s actions today, in converting them to expenditure credits, should ensure that the new incentives carry on the good work of the existing reliefs.
“We also saw other changes, with the extension of the additional relief for theatres, orchestras, museums and galleries, as well as the re-focus of the relief back onto UK costs, denying relief for costs previously allowed in the European Economic Area.”