Commons Sense

House of Commons · Written Ministerial Statement

Independent Film Tax Credit

09 October 2024 · Department for Culture, Media and Sport

Proposed by Chris Bryant Lab Rhondda and Ogmore

Culture, Media & SportTaxation

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The government has introduced regulations to establish the Independent Film Tax Credit to support low-budget British films.
  • These regulations will take effect from October 30, 2024, offering an enhanced Audio-Visual Expenditure Credit rate of 53% for eligible productions.
  • HMRC will begin accepting applications for the Independent Film Tax Credit on April 1, 2025.

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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