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FTR Introduced 1st January 2007

Film Tax Relief

Film Tax Relief is available to film production companies within the charge to UK Corporation Tax. The relief provides additional deductions against profits or allows losses to be surrendered to HMRC for payable tax credits.

Established under Finance Act 2006

April 2024 Update: This relief is now part of the Audio-Visual Expenditure Credit (AVEC) scheme, offering enhanced rates of 34-39% on qualifying UK expenditure.

Eligible Entities

  • ✓ Companies incorporated in the UK
  • ✓ Companies with a UK permanent establishment subject to Corporation Tax
  • ✓ Film Production Companies (FPCs) actively participating in production planning and decision-making

Qualifying Criteria

  • 1. Must pass the BFI Cultural Test or qualify as official co-productions
  • 2. Must target theatrical release
  • 3. At least 10% of core costs must relate to UK activities
  • 4. Principal photography must begin on or after 1st January 2007

Cultural Test Requirements

The BFI Cultural Test is points-based, assessing whether a film qualifies as British.

18/35
Minimum points required

Assessment Categories

  • * Cultural content
  • * Cultural contribution
  • * Cultural hubs
  • * Cultural practitioners

Core Expenditure

Eligible for tax relief enhancement

  • ✓ Pre-production costs
  • ✓ Principal photography costs
  • ✓ Post-production costs

Non-Core Expenditure

Not eligible for enhancement

  • ✗ Development costs
  • ✗ Distribution costs
  • ✗ Non-production activities

Speak With a Specialist

FTR, grants, maybe both - let's figure out what makes sense for you. It's free to find out.

Check Your Eligibility

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