Tax Breaks Bring Boost for UK Animation

The British Film Institute recently released some new data showing the big impact that UK Govt tax relief has had on animation production here in the UK over the last few years.

Tax relief has been a big success, and has led to a big increase in animation production. As a result, despite the tax cuts, the Treasury is collecting more tax, not less, thanks to the increase in overall business.

What is Animation Tax Relief?
Animation Tax Relief was introduced in 2013 following a successful campaign led by Animation UK, with a big contribution from our friends at Blue Zoo animation.

How big is the animation business in the UK?
According to BFI research, production expenditure was about £97.1 million in 2016. This is an increase of 27% since the introduction of Tax Relief in 2013.  BFI estimates that this investment has paid off, earning £4.44 for every £1 of tax relief.

BFI also estimate that if you take into account the ancillary products generated by the animation industry, such as DVDs, books, toys and clothing - the overall contribution of the animation sector is calculated at a little under £1billion.

What does this mean for our students?
The growth in the UK animation industry is obviously great news for our animation students and recent graduates. One of the big changes in the animation industry in recent years has been the return on animation production to the UK, so that projects aren't just designed and storyboarded in Britain, and then shipped to Asia for production. Instead, the production stays at home, bringing jobs and business back to the UK.

To see more, read the full story at UK Screen Alliance.


The Escape Studios Animation Blog offers a personal view on the art of animation and visual effects. To find out more about our new BA/MArt, now recruiting for September 2019,  follow this link.   To apply, visit the offical page here.