Corporation Tax Act 2009 section 1179EA

Meaning of "production activities", "principal photography" and "animation"

Section 1179EA defines three key terms — "production activities", "principal photography" and "animation" — used throughout the audio-visual expenditure credit regime for films and television programmes.

• "Production activities" covers the full lifecycle of a film or TV programme: development, pre-production, principal photography and post-production.
• "Principal photography" is broadly defined and includes computer-generated imagery (CGI) created for inclusion in the film or programme.
• A film or TV programme qualifies as an "animation" only if the finished work contains animation and at least 51% of total core expenditure relates to that animation.
• The 51% expenditure threshold is measured against the core expenditure on the completed film or programme, not against total production costs.