From January 2024 the UK Government introduced the new Audio Visual Expenditure Credits (AVEC), replacing the previous system of Tax Credits for qualifying film, high-end TV, animation, Children’s TV and Video Games being created in the UK. From 1st April 2025, all productions must claim via the new Expenditure Credits.
The below page provides further information on accessing Expenditure Credits for feature films and High-End TV.
Feature Film AVECs – The Value
For a UK qualifying film project of any budget, a Film Production Company can claim a credit rate of 34% gross, which after tax, is equivalent to the below
AVEC: 25.5% net for live action feature films
29.25% net (39% before tax) for animated feature films
39.75% net (53% before tax) for films qualifying for the Enhanced AVEC / Independent Tax Film Credit (see below for more information)
Expenditure Credits can be received as an offset against tax or as a cash rebate
They are available on up to a total 80% of the core UK expenditure
VFX Costs
Under the AVEC, from 1 April 2025, qualifying VFX carried out in the UK will benefit from a 29.25% net credit rate (39% before tax)
Important: The usual 80% cap on qualifying expenditure does not apply to UK VFX spend
There is no minimum spend for VFX, as long as the minimum UK core spend of 10% of the total budget is met
Enhanced AVEC (also known as Independent Film Tax Credit / IFTC)+
To access this enhanced AVEC, it applies only to Feature Films with a core expenditure of no more than £23,500,000
The enhanced AVEC can only be claimed on the first £15,000,000 of qualifying core expenditure
It is available on up to a total of 80% of the core UK expenditure
Accessing the Feature Film AVECs +
The BFI certification unit is the first point of contact for applicants wanting to qualify their film as British to access the AVECs
The qualifying film must be intended for theatrical release
They must have a minimum UK core spend requirement of 10% of the total budget
To access the IFTC, as well as the Cultural Test, you will also need to meet the new creative requirements below to qualify;
Lead Director is a British citizen or Resident in the UK
Lead Writer is a British citizen or Resident in the UK
Or certified as an official UK Co-production
High-End TV AVEC – The Value
For qualifying High-End Television projects with a minimum budget of £1million per broadcast hour, the TV Production Company can claim a cash rebate at the rate of 34% gross which after tax, is equivalent to the below
AVEC: 25.5% for HETV
Expenditure Credits can be received as an offset against tax or as a cash rebate
They are available on up to a total 80% of the core UK expenditure
VFX Costs
Under the AVEC, from 1 April 2025, qualifying VFX carried out in the UK will benefit from a net rate of 29.25% in respect of expenditure incurred on or after 1 January 2025
Important: The usual 80% cap on qualifying expenditure does not apply to UK VFX spend
There is no minimum spend for VFX, as long as the minimum UK core spend of 10% of the total budget is met
Accessing HETV AVEC +
The BFI certification unit is the first point of contact for applicants wanting to qualify their television projects as British to access the UK tax reliefs.
It must be intended for broadcast (including internet)
It must have a minimum core expenditure of £1 million per broadcast hour, 30 minute episodes can still qualify but an average spend of £1 million per hour is still required.
Programme length must be greater than 20 minutes
Applies to drama, comedy and documentary programmes
The programme must have a minimum UK core spend requirement of 10% of the total budget.
BFI
You can find further information on all the UK’s Creative industry expenditure credits here or download the BFI’s guide to Audio Visual and Video Games Expenditure Credits here.
