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UK film sector handed major jobs and growth boost by tax reliefs

By October 10, 2024Uncategorized

UK film sector handed major jobs and growth boost by tax reliefs

The new tax reliefs will empower UK filmmakers to create more independent films and co-produce with other countries.

The UK government has introduced a major boost to the next generation of independent films through a tax relief uplift. This initiative aims to create jobs and drive growth by making more British hits like Aftersun (2021) and Billy Elliot (2000) possible.

The Independent Film Tax Credit (IFTC) will allow films with a total core expenditure of under £15 million to be eligible for a relief of 53% on qualifying expenditure. Films with a total core expenditure of up to £23.5 million can qualify for the IFTC, however can only claim on up to a maximum of 80% of £15 million of the core expenditure. £23.5 million is the tipping point where it becomes more advantageous to claim the standard rate of AVEC without being capped at £15 million.

The creative industries are a key part of the economy, generating £125 billion a year, and form a central part of the government’s mission to grow the economy. The UK film sector is already worth £1.36 billion and employs more than 195,000 people, with the potential to grow further thanks to these reliefs.

British indie films like Rye Lane, Rocks, Bait and Pride tell award-winning stories about our country, celebrating parts of our culture that often get less exposure. This relief will allow more stories like these to be told, enabling more people to see their lives and experiences reflected on screen.

To meet the criteria for this relief, films must have a UK writer or director or be certified as an official UK co-production.

“The speed with which the government has turned this around shows how vital this intervention is for independent film,” said BFI Chair Jay Hunt. “It will have a gamechanging impact across the whole UK screen sector – creatively and economically.”

 Ben Roberts, BFI Chief Executive, said: “This is great news for UK film and is already having a positive impact across our industry. More films can now be made in the UK that audiences at home and internationally will get to enjoy. Independent filmmaking is vital to our cultural expression and creativity, it builds careers for talent in front of and behind the camera, and also showcases UK creative excellence on a world stage. We’re grateful to government, the DCMS and the industry for working together to establish this transformative tax relief uplift where it is most needed.”

Source: BFI

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