The UK government has recently announced the introduction of a 40% Independent Film Tax Credit (IFTC) to provide enhanced tax support for independent films in the country. This new tax credit allows eligible films to opt-in to claim an enhanced Audio-Visual Expenditure Credit (AVEC) at a rate of 53% on their qualifying expenditure. This equates to around 40% in relief for the production companies involved.Starting from April 1, this new indie relief will be separate from the existing film and high-end TV tax credit schemes but will fall under the new Audio-Visual Expenditure Credit umbrella.
The IFTC is designed to support independent filmmakers and encourage more production activities in the UK.Under the UK Film Tax Relief (FTR) scheme, which is available for all British qualifying films regardless of budget level, production companies can claim a payable cash rebate of up to 25% of UK qualifying expenditure.
This means that filmmakers can benefit from multiple tax incentives to help reduce production costs and stimulate the local film industry.In summary, the 40% Independent Film Tax Credit is a significant boost for independent filmmakers in the UK, providing them with additional financial support to bring their projects to life and contribute to the growth of the country’s film industry.
