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UK animation studios threaten to up sticks over tax concerns

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By John Glenday, Reporter

November 17, 2011 | 1 min read

Several UK animation studios are demanding that the government reduce the tax burden on their operations – or risk business migrating to more favourable regimes in Ireland, France and Canada.

Amongst the firms voicing concern are Aardman Animation, famous for their work on Wallace and Gromit, and Sun and Moon Studios a Bristol based creative.

They describe a “crisis” in the homegrown animation industry amidst a flood of cheap foreign imports – necessitating moving production abroad to compete.

To prevent this they are calling for similar concessions to those made to the film industry – which receives a 15-20% tax credit.

Illustrating the gravity of their plight Bob the Builder producer HIT, has recently been swallowed up by foreign competitor Mattel whilst Cosgrove Hall, producer of Danger Mouse, has gone out of business altogether.

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