Exciting news for the indie film industry! For financial periods beginning on or after 1 April 2024, HMRC has introduced a new Independent Film Tax Credit — a game-changer for smaller productions. With a generous rate of 53%, this initiative goes beyond the current 34% and 39% credits available for other film and animation productions, providing unparalleled support for independent creators.
This tax relief applies to expenditure incurred from 1 April 2024, with the first claims available after 1 April 2025, which is coming soon! Here’s what filmmakers need to know:
Who Qualifies for the 53% Tax Credit?
To claim the Independent Film Tax Credit (Enhanced AVEC), productions must meet two key criteria:
• Core expenditure must fall below £15 million.
• The production must pass a cultural test, overseen by the British Film Institute (BFI), which evaluates elements like key creative talent, directorship, and alignment with UK cultural values and stories
For filmmakers, understanding these criteria is essential — not just for upcoming projects, but also for making decisions about hiring, location, and budgeting.
This credit applies “above the line”, which means it is taxable, but it is still more generous than the regular AVEC rate.
Why This Matters
This change isn’t just about financial relief; it’s an investment in the UK’s creative industries. With the availability of tax relief, production companies may choose to hire talent and services within the UK, keeping jobs at home and directly supporting our economy.
By incentivising local hiring, this policy strengthens the pipeline for UK creatives, ensuring that we continue to tell our own stories with authenticity and heart.
Planning for Success
If you’re considering an independent film project, it’s worth starting the planning process now to ensure your production qualifies. Understanding what costs are eligible — such as labor, post-production, and materials — can help you structure your budget strategically.
This is where I can help. With experience navigating applications to the BFI and expertise in identifying qualifying expenditure, I’m here to guide filmmakers through the process. Whether you’re mapping out future projects or rethinking your approach to production, I can help you maximize your tax relief opportunities.
The new Enhanced AVEC (commonly known as the Indie Film Tax Credit) will be available for the first claims starting 1 April this year. How do you know if your films are eligible?Â
Final Thoughts
The introduction of the Independent Film Tax Credit marks a significant step forward for the indie film community. It’s a recognition of the unique challenges and value of independent storytelling, and it offers a powerful incentive to invest in UK talent and resources.
By embracing this new opportunity, we can create not just incredible films, but a thriving ecosystem for UK creatives and storytellers.
If you’d like to learn more or need help navigating these changes, feel free to reach out to Gray Burke-Stowe. Let’s ensure your project not only qualifies but thrives.
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