Film tax relief takes two forms; an additional allowable deduction and film tax credit. It is available to film production companies on expenditure incurred on a qualifying film. A film qualifies for relief if:

  • At least 25% (or 10% from 1st April 2014) of the core expenditure incurred on a film is UK expenditure.
  • It is intended for theatrical release
  • It is certified as a British film.

UK expenditure is core expenditure on goods or services that are consumed in the UK.

A film intended for theatrical release is one intended for exhibition to the paying public at the commercial cinema.

A certified British film is one certified by the Secretary for State of culture, media and Sport as a “British film” having passed a number of cultural tests. Let us use our experience to assist your qualification for the following tax reliefs:

Additional Deduction Relief

The amount of relief available is determined according to whether the relief is being claimed in respect of the first period of account and whether the core expenditure is £20 million or less. The additional deduction is 100% for films with core expenditure of £20 million or less and 80% in other cases.

Film Tax Credit

A film production company may claim a film tax credit in respect of any accounting period in which it has a surrenderable loss and the amount of the claim will reduce the amount of the loss. There can be only one film production company for each film unless it is a qualifying co-production. The amount of credit received is 25% of the loss surrendered up to the first £20 million and 20% thereafter.

If you would like assistance in certifying a British film or claiming the reliefs set out above, please get in touch and we shall be happy to talk to you about your claim.