These Regulations amend the Cultural Test (Television Programmes) Regulations 2013 (the 2013 Regulations), updating the cultural test for drama and documentary television programmes, as well as introducing a new cultural test for children’s programmes.

The purpose of the tests is to determine whether a programme may be certified as a “British programme” by the Secretary of State under Part 15A of the Corporation Tax Act 2009 (as inserted by the Finance Act 2013 and as amended by the Finance Act 2014 and Finance Act 2015). Points under the tests are awarded on the basis of the setting, origin of characters, story, language and cultural aspects of the programme, where certain work on the making of the programme is carried out, and the residence or nationality of the personnel involved in the making of the programme. Certification as a British programme is a condition of eligibility for television tax relief under that Act.

Regulation 2 provides for application and exempts certain television programmes from the amendments made by these regulations. Regulation 2(2)(a) provides that the amendments will not apply if an application for certification is made prior to the entry into force of the regulations. Regulation 2(2)(b) and 2(3) provide that if principal photography or shooting has commenced before the entry into force of the regulations, but no application for certification has been made, the television production company may elect to have the amendments made by these regulations not apply to that programme; accordingly such programmes are assessed against the applicable rules for that programme as if these regulations had not been made.

Regulation 4 introduces a new definition for heads of department involved in the production of children’s television programmes. Heads of department are eligible to receive points under the new test for children’s television programmes.

Regulation 5 amends the test for dramas and documentaries to bring it into line with the cultural test for films (Schedule 1 to the Films Act 1985, as amended) by increasing the number of points available from 4 to 6 for programmes with a high percentage of dialogue in English or another language recognised for official purposes in an EEA state, as well as increasing the number of points available when a high percentage of specified production activities involved in the making of the programme take place in the United Kingdom. The number of points available under the test therefore rises from 31 to 35, with the pass mark rising from 16 to 18 points. Regulation 5 also introduces a new cultural test for children’s television programmes, based on the existing cultural tests for other types of television programmes. Points are awarded under the same categories (setting, origin of characters, story, language and cultural aspects of the programme, where certain work on the making of the programme is carried out, and the residence or nationality of the personnel involved in the making of the programme) as for the other categories of television programme.

Regulations 6 to 8 update cross-references in the 2013 Regulations to other conditions relating to passing the tests and provisions that specify the information that must be supplied by applicants requesting certification of their television programmes under the 2013 Regulations.

The impact on business, charities or voluntary bodies arising from this instrument has been included in the Tax Information and Impact Notes prepared for the Finance Act 2015 which was published alongside the Budget on 18th March 2015. The Notes are available on the HMRC website at https://www.gov.uk/government/publications/corporation-tax-high-end-television-tax-relief (in respect of dramas and documentary programmes) and https://www.gov.uk/government/publications/childrens-television-tax-relief (in respect of children’s television programmes). No separate impact assessment has been prepared.