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Independent Film Tax Credit

09 October 2024

Proposing MP
Chris Bryant Lab
Rhondda and Ogmore
Type
Written Ministerial Statement
Department
Department for Culture, Media and Sport
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TAGS
Economy Taxation

At a Glance

Issue Summary

The government has introduced regulations to establish the Independent Film Tax Credit (IFTC) to support low-budget British films.

Action Requested

These regulations, set to take effect from October 30, 2024, provide an enhanced Audio-Visual Expenditure Credit rate of 53% for eligible productions. HMRC will start accepting applications on April 1, 2025.

Key Facts

  • The Independent Film Tax Credit (IFTC) is an uplift to the existing Audio-Visual Expenditure Credit (AVEC).
  • Companies can apply for eligibility certificates from the British Film Institute starting October 30, 2024.
  • HMRC will begin accepting IFTC applications from April 1, 2025.
  • The enhanced AVEC rate of 53% is available for productions with a core budget of up to £15 million.
  • Productions must meet the 'Modified Creative Connection' condition involving British directors or scriptwriters or being official UK co-productions.
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