Britain’s government has thrown a lifeline to beleaguered kids TV producers with a new tax credit system that came into effect on January 1. 

The Audio-Visual Expenditure Credit now offers an additional US$54,000 in relief to animated series/films and kids TV shows with a qualifying spend of US$1.2 million. And high-end TV and film projects can access an additional top-up of about US$6,300. 

Open to UK productions only, the new system represents a 4.25% increase from previous tax credits. The change will offer producers more overall funding, according to the government’s official release, as well as improved flexibility and more clarity regarding amounts to be received. 

To accommodate projects that are already in the works—and to give producers some time to catch up—productions that are in development up to April 1, 2025 can continue using the previous tax credit system until April 1, 2027. 

The region’s animation and kids media orgs are happy about the improvement, but feel the new tax credits don’t go far enough to support the industry. 

This may be true, but it’s a step in the right direction, says Animation UK executive chair Kate O’Connor optimistically. “We asked for an increased level and will continue to do so, but [we] know it will make a difference to production levels and spend.”

Greg Childs, director of the Children’s Media Foundation, agrees that it’s good for the industry, but feels that more drastic changes are needed in order to give the industry a real boost. “The tax credit increase is welcome because every little bit helps,” says Childs. “But ‘little’ is the key word. The UK government needs to realize that if it wants the animation industry to compete in the international market, more support is needed to match some of our competitors. And if they want great UK live-action content, we need a total rethink on funding public service content.” 

Several UK companies are planning to get together at the Children Media Foundation’s new Children’s Media Summit on February 28 in London to lobby for additional support. The goal of the gathering is to come up with solutions as an industry so kids have an easier time finding relevant and age-appropriate content. 

The British government has already unveiled other plans to support its lucrative creative industry, including extending tax credits for live theater shows, orchestras and museums (45% for non-touring productions and 50% for touring productions) for an additional two years until April 2025. 

Photo courtesy of Sabrina Mazzeo via Unsplash