CREC023000 - Qualifying productions: high-end television
High-end television programmes include dramas, comedies and documentaries. In addition to the main qualifying criteria for TV programmes, they must also meet the slot length and hourly cost conditions.
Meaning of ‘drama’
Section 1179DF(2) Corporation Tax Act (CTA) 2009
A ‘drama’ is a programme that:
consists wholly or mainly of a depiction of events
the events are depicted wholly or mainly by one or more persons performing, and
the whole or majority of what is done by the performers involves the playing of a role, whether by speech, acting, singing or dancing
Dramas may be based on fictional events, or non-fictional events.
The definition of drama includes comedies, provided they meet the description above.
Meaning of ‘documentary’
Section 1179DF(3) CTA 2009
A ‘documentary’ is a programme that:
depicts real events, places or circumstances
is not a drama, and
is primarily intended to record or inform
Note that the programme must be ‘primarily’ intended to record or inform. Entertainment programmes which include informative elements that are not the main focus of the programme are not treated as documentaries for the purposes of the Audio-Visual Expenditure Credit (AVEC).
Where a programme is a ‘docu-drama’ it is possible that a programme may be both a documentary and a drama. A programme need only fall into one of these categories to meet the criterion of being of an ‘eligible category’.
Neither drama nor documentary
Care is needed where the programme may appear to be neither a drama nor a documentary. This might be the case where the programme does not contain sufficient dramatic scenes to constitute a drama, but the content of the programme does not attempt to be objective or factual.
It is unlikely that a programme will not constitute either a drama or a documentary unless it contains elements of non-drama. These will typically be excluded programmes in their own right (CREC022000).
Hourly cost condition – section 1179DI CTA 2009
The average core expenditure (CREC051000) per hour of slot length in relation to the programme must be at least £1 million.
The slot length is determined by the commissioning broadcaster and includes time allocated to advertising. The length of the programme will therefore often be shorter than the allocated slot time. For streaming sites and other broadcasters that do not run adverts, the slot length will be the same as the running time.
The threshold is based on spend per hour. If the slot length is shorter or longer than an hour, the minimum spend is reduced or increased accordingly.
For example, a programme with a slot length of 45 minutes must have core expenditure of at least £750,000, and a programme with a slot length of 2 hours must have core expenditure of at least £2 million.
The test takes all core expenditure into account, both UK expenditure and non-UK expenditure.
Core expenditure consists of expenditure on:
pre-production
principal photography
post-production
Where a programme takes more than one period to complete, the core expenditure requirement will need to be estimated to determine if the programme will qualify as a high-end TV programme. However, it is anticipated that a production with core expenditure over £1 million will have adequate budgets and forecasts to be able to estimate this with reasonable certainty.
Slot length condition – section 1179DI CTA 2009
The programme must be commissioned to fill a slot length of more than 20 minutes per episode.
The test is applied on an episode-by-episode basis. If one episode of the programme has a slot length of 20 minutes or less, the programme will not meet the condition even if the average slot length across all episodes is over 20 minutes.
There will typically be no ambiguity over the commissioned slot length. This will be a matter of fact that can be determined by the contract and the actual slot length when the programme is broadcast.
The slot length includes any time allocated to advertising. There is no set minimum amount of time for the actual running time of a programme. There are restrictions in the UK, the EU and most countries on the maximum permissible length of time that can be devoted to advertising.