UK Screen Sector Tax Incentives

The UK government offers tax incentives for: 

• Films​​ 
• High-end television programmes​​ 
• Animation television programmes​​ 
• Children’s television programmes ​​ 
• Video games​ 
• VFX 

Qualifying criteria:​​ 

• UK production company within the UK Corporation Tax net, set up and registered before production or development begins​​ and is responsible for the whole production through to completion  
• Minimum 10% expenditure in the UK ​​ 
• Feature/documentary/short film/animation film: must be intended for theatrical release in commercial cinemas (includes film festivals where tickets are purchased to see film)​​ 
• High-End Television, Animation Television and Children’s Television must be intended for broadcast (this includes the internet and streaming platforms) 
• Qualify as British either as an official co-production, or ​through the relevant cultural test for each sector​

The new Enhanced AVEC rate of 53% is targeted at lower budget films with a core expenditure of up to £23.5million. Claims can be made on core expenditure used or consumed in the UK on up to £15 million and capped at 80% of the total budget. 

Qualifying criteria:​​ 

• Enhanced AVEC is a higher rate of the Audio-Visual Expenditure Credit (AVEC) and is also referred to as IFTC. ​ 
• The film must have a total core expenditure below £23.5m (but can only claim on first £15m used or consumed in the UK). ​ 
• The film must pass the cultural test or be an official co-production. 
• If via the cultural test – the Creative connection condition must be met:​ 
• Have a UK national or resident lead director​ or: 
• Have a UK national or resident lead writer;  
• Official co-production only needs to meet the core spend condition.​ 

VFX and Post-production are eligible expenses within the UK’s AVEC, providing the basic AVEC qualifying criteria are met: 

• Films over £23.5m (not qualifying for the Enhanced AVEC (IFTC)) and HETV projects are able to claim an enhanced 39% (29.25%) rate of AVEC on their qualifying UK VFX costs (increased from 34%). ​​ 
• Films under £23.5m are only eligible to claim the VFX uplift if they are not claiming the enhanced AVEC (IFTC)​ 
• The VFX costs are exempt from the 80% cap on qualifying costs. ​​ 
• Qualifying VFX costs incurred from 1 January 2025 are eligible.​ 
• Projects can only claim on the increased rate for UK VFX spend once they have a final certificate.​ 

Available for Video Games intended for supply: 

• UK development company within the UK Corporation Tax net, set up and registered before full development begins​​ and is responsible for the whole project through to completion 
• Minimum 10% expenditure in the UK 
• Qualify as British under the Video Game cultural test 

In order to qualify for AVEC and VGEC, all films, television programmes and video games must be certified as British through the cultural test or qualify as an official co-production. 

Why qualify as British? 

• Gateway to accessing the outgoing tax reliefs or the new AVEC/VGEC. 
• Claim AVEC/VGEC during production / development as expenditure is incurred. 
• Finance project against AVEC/VGEC advance from lenders. 
• Helps with distribution/finance/publishing. 
• Eligibility requirement for BFI funding, UK Global Screen Fund, regional funding & festival selection. 

The BFI Certification Unit is the first point of contact for UK producers/developers wanting to access the UK’s audiovisual expenditure credits (AVEC) for Film, HETV, Animation TV and Children’s TV or Video Games Expenditure Credits (VGEC) for Video Games. 

They assess projects against the sector specific cultural test or as official co-productions and provide advice and guidance to producers/developers on the qualifying processes and the incentives. ​ 

For more information visit the British Film Institute website.