United Kingdom Film Tax Incentives

Country: United Kingdom (Replaced Film Tax Relief / High-End TV Tax Relief / etc. effective January 1, 2024) NOTE: The UK consolidated its previous Film Tax Relief (FTR), High-End Television Tax Relief (HETV), Animation Tax Relief, and others into a single Audio-Visual Expenditure Credit (AVEC) effective January 1, 2024. CREDIT RATES (AVEC, effective January 1, 2024) -----------------------------------------------

Eligibility

• Must be a "film" or qualifying TV/animation production
• At least 10% of core expenditure must qualify as UK expenditure
• Must pass the Cultural Test (BFI administers) or qualify as
• an official co-production
• Production company must be UK-incorporated or EU/EEA resident
• No minimum or maximum budget threshold for films
• Cultural Test: Points-based system assessing UK content, locations,
• crew, and subject matter. 18+ points (out of 35) required.

Frequently Asked Questions

What is the United Kingdom film tax credit?

United Kingdom offers a 25.5-39.75% net (AVEC/IFTC) tax credit, structured as a Payable Expenditure Credit (refundable), with an annual program cap of 80% of core expenditure (VFX exempt). The program is designed to attract film and television productions by offsetting a portion of qualifying local expenditures.

How much is the United Kingdom film tax credit?

The United Kingdom tax credit is 25.5-39.75% net (AVEC/IFTC), structured as a Payable Expenditure Credit (refundable). The exact rate your production qualifies for may depend on factors such as local hiring, filming location, and production type.

What is the minimum spend to qualify for the United Kingdom film tax credit?

Productions must meet a minimum spend threshold of 10% of core expenditure in UK in United Kingdom to be eligible. Spend typically includes below-the-line costs incurred within the region, though qualifying criteria vary by program — consult the local film office for the full eligibility rules.

Is there a cap on the United Kingdom film tax credit?

Yes. The United Kingdom program has a program-wide cap of 80% of core expenditure (VFX exempt) and a per-project cap of None (standard); £15M qualifying spend (IFTC). Productions should apply early, as allocations can be limited.

How do I apply for the United Kingdom film tax credit?

Productions typically apply through the United Kingdom film office or the relevant government agency. Applications are generally submitted before principal photography begins, with final certification issued after production is complete and qualified spend is audited. Check the official film office website for current application guidelines, deadlines, and required documentation.