Leveraging private investment in content and business growth

As outlined in the Animation UK Manifesto, Animation is distinctive among the screen sectors for the time it takes to develop, produce, and recoup a project. However, another distinguishing feature is the potential longtail of investment returns as animation productions continue to generate returns over a long period because a high proportion of returns are generated from additional revenue streams following the project’s release – for example, from merchandising and licensing. Animated content also travels well and is highly exportable. However, current private investment schemes should be amended to unlock more investment in animation studios and their output.

Animation UK’s proposed strategy is to further incentivise private sector tax investment in growth and extend the
required holding periods for EIS and SEIS investments. This would encourage investors to stay invested for a more extended period, potentially increasing the chances of successful IP development. In addition, provide targeted guidance and support to companies engaged in IP development and use fiscal incentives to better support the
animation sector, including developing standard methods for valuing IP and exploring links to Patent Box eligibility.

The return on investment would be a 100% increase in private investment.