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At Spring Budget 2024, the Chancellor announced the UK Independent Film Tax Credit (IFTC). Under IFTC, eligible films will be able to opt-in to claim enhanced Audio-Visual Expenditure Credit (AVEC), at a rate of 53%, on their qualifying expenditure.

The government is introducing a transformational, generous enhanced tax credit, designed to boost the production of UK independent films and support UK talent in films.

What are the conditions to qualify?

To be eligible for the IFTC, films will need to have production budgets (excluding marketing and distribution) of up to £15 million.
Films will also need to meet criteria set out in a new British Film Institute (BFI) test, with the expectation that films will need to meet at least one of the following conditions:

• Have a UK writer

• Have a UK director

• Be certified as an official UK co-production.

Qualifying productions must have started principal photography on or after 1 April 2024, and only expenditure incurred on or after 1 April 2024 can be claimed.


If claiming the IFTC, separate claims for the visual effects and animation uplifts cannot be made. This is because the IFTC rate of 53% has been specifically calculated based on independent film sector trends.

The IFTC will be an optional enhanced tax credit for productions that already meet the conditions of AVEC. These include (but are not limited to):

  • Productions must be certified as culturally British by the BFI;
  • Productions must be made by a UK production company
  • At least 10% of a production’s core expenditure must be used or consumed in the UK. Provided this threshold is exceeded, AVEC can then be claimed on qualifying UK core expenditure (further details below).

How will the credit be calculated?

The credit will be calculated in the same manner as AVEC on “core expenditure”: expenditure which is incurred on production activities, and not ancillary activities such as marketing or distribution.

The credit will be calculated in the same manner as AVEC on “core expenditure”: expenditure which is incurred on production activities, and not ancillary activities such as marketing or distribution.

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