Source · Select Committees · Culture, Media and Sport Committee
Recommendation 2
2
Accepted in Part
Essential funding for film sector development needed to grow resilient production companies.
Conclusion
Development is the essence of R&D in the film sector. Funding it is essential for producers to develop valuable intellectual property, pay creative teams from the earliest stages of a project and maintain a consistent slate of films. This is vital for the Government’s growth agenda, as funding production companies’ slate development will enable them to grow resilient businesses. (Conclusion, Paragraph 18)
Government Response Summary
The government, while not changing the R&D definition, will publish revised guidance in 2025 clarifying that arts activities contributing to scientific or technological advances are within the scope of R&D tax reliefs. This aims to support eligible interdisciplinary innovation.
Government Response
Accepted in Part
HM Government
Accepted in Part
Whilst no changes are planned to the definition of R&D for tax relief purposes, the Creative Industries Sector Plan announced that HMRC will publish revised guidance for the R&D tax reliefs. This will clarify that, where a project seeks an advance in science or technology, arts activities that directly contribute to the advance by resolving scientific or technological uncertainties are within the definition of R&D for the reliefs, and their qualifying costs, such as salaries, can qualify for relief. This guidance will be published in 2025 and will clarify that eligible interdisciplinary innovation can be supported by R&D tax relief.