Animation Tax Relief Loans (ATR)
Access your future Animation Tax Credits early with a cashflow advance from Buzz Capital.Start Your Online Application Now
What is Animation Tax Relief?
To help stimulate high-quality animation production in the UK, the Government introduced Animation Tax Relief (ATR) to qualifying businesses within the animation sector. This valuable production incentive (also known as Animation Tax Credits) allows animation businesses to claim a cash rebate of costs at the end of the company’s financial year.
What is an Animation Tax Relief Loan?
Although the Government incentive is great for the animation sector, we can appreciate that the rigid structure of waiting for your funds to be released, often months after your financial year-end, can seriously restrict your cash flow.
A Tax Relief Loan from Buzz Capital can help animation businesses gain access to their Tax Credit payments at a much earlier stage. Cut out the waiting time for a financial boost with Buzz.
Who can claim Animation Tax Relief?
To claim Animation Tax Relief, your project must:
-Be certified as British by the British Film Institute (BFI)
-Be intended for broadcast on television or online
-Have spent at least 51% of the core expenditure on animation
-Have spent at least 10% of the core costs on activities within the UK
Core expenditure refers to what’s been spent on pre-production, principal photography, and post-production during the project; and the company must be responsible for all of these costs. Additionally, the business must be actively engaged in planning, decision making and negotiating on contracts, rights, goods and services.
Firstly, the process is administered by the BFI (who are responsible for certifying a project as British), and HMRC (who review your claim when you submit your corporation tax return after your financial year-end). There is some helpful guidance on both the BFI website and HMRC website – which we highly recommend reviewing prior to making a claim.
How much can I claim from Animation Tax Credits?
Although there is no overall cap on the amount which can be claimed, Tax Relief is available on qualifying UK production expenditure on the lower of either 80% of total core expenditure or the actual UK core expenditure incurred. Companies are then entitled to claim up to 25% of the total UK qualifying expenditure. If you need any assistance in calculating the total amount of your claim, we are happy to introduce you to someone who can help.
When would I receive an Animation Tax Credit from HMRC?
Your business would receive the Animation Tax Credit once their claim has been processed at the end of the company’s financial year. We appreciate that following the submission of the CT600, waiting for your Tax Relief can often be a long and lengthy process.
Buzz Capital removes the inflexibility of waiting to access the funds you are eligible for. If you want increased cash flow now, there’s no need to wait.
How long does it take to receive an Animation Tax Credit advance?
Buzz can provide you with a Tax Relief advance within a matter of days! Once you have filled our application form and provided your information, we seek to promptly provide a term sheet ready for signature. Once signed, we can issue the relevant legal agreements which once agreed allows us to make the Animation Tax Credit advance payment directly into your business bank account.
Our knowledgeable team of experts provide you with the opportunity to gain your corporation tax incentives early through an affordable Tax Relief loan.
Our lending process for Animation Tax Relief is fast and efficient, helping you gain access to funds to drive your business forwards. If you require assistance with a query, a friendly member of our team will be happy to help. Contact us today.