Rise in incentives for creative industries demonstrates sector resilience despite headwinds
New statistics published today show that HMRC paid out £2.45bn in creative industries tax reliefs and expenditure credits for the year to 31 March 2025 – a 7% increase from the previous year (£2.28bn).
Film and TV related incentives continue to dominate, with claims reaching £1.7bn, representing 69% of all amounts paid. Within this, claims for high-end TV have decreased, but are more than offset by an increase in film claims, partly driven by claimants looking to make use of the more generous Independent Film Tax Credit, now in its first year.
Claims for video games continue to show consistent growth, with an increase of 18% year-on-year, mainly due to a rise in medium and large claims between £100k and £2m.
Other reliefs showed strong growth, with orchestra tax relief increasing by 25% and museums and galleries exhibition tax relief up 37%, helped by the commitment to maintain these reliefs at higher levels.
Will Simpson, creative sector director at RSM UK said: “These results are positive and show resilience in the creative industries, coming at a time of well publicised restructuring and job losses in some areas of the sector. The continued growth demonstrates the UK government’s commitment to these incentives, and underscores how the UK punches above its weight in producing world-class quality output.
“Despite its world-leading status, these sectors continue to face significant challenges, including reduced sources of funding from other areas, and the need to adapt to constantly changing consumer habits.
“These reliefs play a vital role in supporting thousands of highly skilled jobs across the country. In an increasingly competitive international environment, they remain a key reason creative businesses choose to work in the UK.”