Creative industry tax reliefs: 10 insights from HMRC’s 2026 statistics
What do HMRC’s creative industries statistics tell us?
HMRC’s creative industries statistics show the number of productions and claims receiving tax relief, the amounts claimed and how payments vary by claim size. They cover eight tax reliefs and expenditure credit schemes, spanning film, television, animation, video games, theatre, orchestra and museum exhibitions. Due to filing and amendment deadlines, the latest figures, released in September 2026, relate to the financial years up to 31 March 2025.
The relief system is currently undergoing two major changes which reshape the credits available. Firstly, the five established audio-visual reliefs, covering film, high-end TV, animation, children’s TV and video games, are being phased out in favour of expenditure credits, AVEC and VGEC, with the transition becoming mandatory for all new productions from 1 April 2027. At the same time, newer incentives such as the Independent Film Tax Credit and the enhanced VFX rate are creating claim categories that didn’t exist in the prior reporting year. Therefore, some caution is required when reading year-on-year comparisons in this release.
Eligibility, claim timing and the choice between the old relief and the new expenditure credit differ by production type, and getting any of that wrong can often mean under-claiming or a delayed credit payment.
Our Creative Industry Tax Reliefs Guide for UK Companies sets out who qualifies, how each relief and credit works, and what to have ready before submitting a claim.
Here’s what the latest figures reveal.
1. Creative sector tax support reaches a record £2.45bn
HMRC paid out £2.45 billion across creative industry tax reliefs and expenditure credits relating to 2024/25, a rise from £2.28 billion in the previous year. This underlines the growing importance of tax incentives in attracting and retaining creative investment in the UK.
2. Film relief hits an all-time high
Support for film productions increased to £702 million, representing a 39% increase year-on-year, and the highest level since the relief was introduced. The rise reflects both strong production activity and an increased adoption of the new expenditure credit regime.
3. High-End TV remains the largest recipient of relief
Although the value of claims fell by 10%, High-End Television still received £936 million of support, accounting for around 38% of all creative industry relief paid. Overall, premium television production continues to be a cornerstone of the UK’s creative economy.
4. The transition to expenditure credits is accelerating
The publication provides the first detailed look at the new audio-visual expenditure credit (AVEC) and video games expenditure credit (VGEC) schemes. Claims under the new regime increased significantly during 2024/25 as businesses prepare for the full transition by 2027.
5. Video game reliefs continues to outperform other sectors
Video game reliefs (VGEC and VGTR) reached £395 million, an increase of 18% on the prior year. HMRC notes continued growth in both the volume of productions and the overall value of claims, reinforcing the UK’s position as a leading games development hub.
6. Independent films receive a major boost
The new Independent Film Tax Credit (IFTC) generated £57 million of support in its first year, across 145 claims. The regime offers an enhanced 53% expenditure credit for the first £15 million of a production’s qualifying expenditure. The design is intended to strengthen the UK’s independent film sector and encourage domestic creative talent.
7. Cultural reliefs continue to support the arts
Beyond film and television, substantial relief was claimed by:
- Theatre productions: £258 million
- Orchestras: £55 million
- Museums and gallery exhibitions: £41 million
These sectors continue to benefit from government support as venues and organisations rebuild and invest for the future.
8. Large productions drive the majority of value
Across most regimes, a relatively small number of large claims account for the majority of support provided. In film, for example, just 3% of claims exceeded £5 million, yet these represented 67% of total relief paid.
9. Enhanced VFX incentives could be the next growth driver
HMRC highlighted the introduction of enhanced support for UK visual effects expenditure through AVEC, including a higher relief rate and removal of the qualifying expenditure cap for eligible VFX costs. The impact is expected to become clearer in next year’s statistics.
10. The UK remains committed to competing globally
Taken together, the figures demonstrate a clear policy objective: maintaining the UK’s attractiveness as a destination for creative investment. From major studio productions and television series to independent films, video games and cultural institutions, creative tax reliefs continue to play a central role in supporting growth and competitiveness.
What does this mean for your business?
Gemma Thake, Tax Partner at Price Bailey commented:
“The message from HMRC’s latest figures is clear: creative industry reliefs are delivering tangible economic impacts across the UK. While the headline growth in reliefs highlights increasing investment across film, television and gaming, the data also shows how vital tax incentives remain in supporting innovation, cultural organisations and creative businesses of all sizes. As reforms continue and new incentives such as AVEC, VGEC and the Independent Film Tax Credit become embedded, businesses that proactively review their eligibility and claims processes will be best placed to benefit from the next phase of growth in the sector.”
If your business produces film, TV, games, theatre or other qualifying creative content, now is the time to check where you sit against these schemes, not after the next filing deadline. Speak to the Price Bailey Tax team to review your eligibility and claims process or read our Creative Industry Tax Reliefs Guide for UK Companies for the full detail on how each relief and credit works.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information on this page is intended as a general guide only. While we work to keep our content accurate and up to date, we cannot guarantee that it reflects the position at the time you are reading it. No responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm. For more information on our editorial process, click here.
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