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HMRC internal manual

Animation Production Company Manual

Eligible expenditure: ineligible expenditure

S1216CF Corporation Tax Act 2009

Television Tax Relief (TTR) in respect of an animation trade by a Television Production Company (TPC) is only available on elements of core expenditure (APC50010) which are used or consumed in the UK.

Completion bond and other forms of insurance

Completion bonds are a form of insurance against the risk that a programme may not be completed. Costs of the completion bond do not qualify for TTR. They are not incurred on animation production activities.

Other forms of insurance, more directly concerned with the animation production activity itself, may qualify. These will be insurance costs that are allowable core expenditure that is also UK expenditure. So expenditure related to individuals or equipment that are UK expenditure during production will be eligible expenditure.

Development costs

See APC50120 - these costs are not part of core expenditure.


Cost related to hospitality and entertainment are disallowable under normal rules.

Publicity and promotion

Publicity and promotional costs do not qualify for TTR. They are not concerned with the making of the programme.

Audit fees

These do not relate to animation production activities. They do not qualify for TTR.

Bank interest and charges

While interest itself is regarded as part of the costs of financing a programme, and therefore not incurred on animation production activities, charges incurred by banks for facilities that are needed by the TPC to engage in animation production activities are part of the costs of animation production. This includes charges associated with the maintenance of a current account from which suppliers, cast and crew can be paid.