His Majesty’s Revenue and Customs (HMRC) has allocated £2.4bn ($3.2bn) in tax reliefs and expenditure credits for the creative industries for the fiscal year ending 31 March 2024, accounting firm RSM UK has revealed citing new statistics published.

This figure represents a 10% increase compared to the previous year’s total of £2.19bn.

The high-end television sector continues to lead, with claims reaching £1.1bn.

Film and television incentives make up more than 72% of the total disbursements, while video game incentives have risen by 12% to £327m.

Theatre tax relief has experienced notable growth, increasing by 65% to £261m, which now exceeds levels seen before the pandemic.

Although the reliefs for animations, children’s television, orchestras, and museums and galleries constitute a smaller fraction of the overall amount, their ongoing growth highlights the significance of these incentives within their respective fields.

RSM UK Creative Sector director Will Simpson said:  “These results are very encouraging and despite headwinds in the some of the creative sectors globally, the figures really help to demonstrate the UK’s ability to attract inward investment and produce world-class quality output.

“The UK is a world leader in the film and video games industry, but these sectors continue to come up against significant challenges, including having to adapt to changing consumer habits. As a result, the tax incentives play a vital role in maintaining the UK’s competitiveness and appeal to investors.

“The reliefs are a key driver behind the remarkable success story of the UK’s creative industries. Recent enhancements to the incentives for animations and children’s TV demonstrate just how quickly well-designed, targeted support can deliver a positive impact on a particular sector.”