The Chancellor announced that the temporarily increased Theatre Tax Relief (TTR) & Orchestra relief credit rates of 45% (for touring productions) and 40% (for non-touring productions), which were due to revert to the lower rates of 25%/20% respectively in March 2025, will now be made permanent.
The Chancellor announced a new UK Independent Film Tax Credit (IFTC). Under IFTC, eligible films will be able to opt-in to claim enhanced Audio-Visual Expenditure Credit (AVEC), at a rate of 53%, on their qualifying expenditure. This is designed to boost the production of UK independent films and support UK talent in films.
Films will need to have production budgets (excluding marketing and distribution) of below £15 million and either a UK writer OR a UK director OR be certified as an official UK co-production. The IFTC will not be available for TV programmes. Productions will need to have a ‘theatrical release’ to qualify.
If claiming the IFTC, separate claims for the existing visual effects and animation tax relief (AVEC) cannot also be made.
Claims can be submitted to HMRC from 1 April 2025 onwards, in respect of expenditure incurred from 1 April 2024, as long as a film did not begin principal photography until after 1 April 2024.
The BFI will assess film budgets to certify that IFTC films meet the budget condition. When submitting claims, companies must submit an additional information form for the relevant period (accompanied by their BFI certificate). The claim then needs to be submitted as part of the Company Tax Return. This procedure mirrors the new AIF procedure for the Research & Development regime.
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