The department for culture, media and sport (DCMS) is seeking views on a proposed test that will identify culturally British video games, animation and high-end television that might be considered eligible for new tax reliefs. The closing date for comments is 29 October 2012.

In the March 2012 Budget, the chancellor announced that the government would introduce corporation tax reliefs for the animation, high-end television and video games industries from 1 April 2013, subject to State Aid approval from the European Commission. The government is seeking to promote the sustainable production of culturally British product/content through these new tax reliefs.

The test currently applying to the UK's existing film tax relief offered a useful starting point when considering the possible design of the cultural tests for tax relief for each sector.

Slightly different cultural tests are proposed for each of the three creative sectors but each is based on the test in the current film tax relief. The tests will require a production to gain at least 16 points out of a maximum of 30 or 31 across a range of cultural attributes. For example, points will be awarded for British locations, British characters, English dialogue, demonstrating British heritage or creativity, production activity taking place in the UK and use of British cast and crew. In some cases, points are awarded for European cultural factors as well as British.

Rachel Austin, Deloitte tax director, comments: 'The animation and video games sector will be particularly pleased to note that the proposals reflect the fact that many games and cartoons are not set in the real world by awarding points for lead characters of a nationality that cannot be determined and worlds or locations that cannot be determined.

'The key remaining challenges for the government are setting the rate of relief at a competitive level compared to other countries offering similar incentives and putting in place an efficient process for claiming the relief.'