Source · Select Committees · Culture, Media and Sport Committee
Recommendation 3
3
Rejected
Amend R&D tax relief definition to capture creative activity in film and HETV sectors.
Recommendation
The Government should immediately amend the definition of R&D for tax relief purposes so that it captures creative activity by the film and HETV sectors, and wider creative industries. (Recommendation, Paragraph 19)
Government Response Summary
The government rejects amending the definition of R&D for tax relief purposes. Instead, it will publish revised guidance in 2025 to clarify that arts activities contributing to scientific or technological advances are within the existing definition, thus supporting interdisciplinary innovation without a definitional change.
Government Response
Rejected
HM Government
Rejected
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.