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HMRC internal manual

Animation Production Company Manual

Eligible expenditure: introduction

A Television Production Company (TPC) that qualifies for Television Tax Relief (TTR) in respect of an animation is entitled to claim an additional deduction in computing the profit or loss arising from the separate trade of producing the animation programme.

The additional deduction is based on the amount of core expenditure that is UK expenditure.

The computation itself is described at APC55000. The first step is determining:

  • the amount of core expenditure, and
  • the extent that core expenditure relates to services or goods ‘used or consumed in the UK’ (APC50050).