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From 1 January 2024 tax relief for films or TV programmes is given through the audio-visual expenditure credit (AVEC). Prior to 1 January 2024 relief was provided through an additional corporation tax deduction or a tax credit (see D7.1204 onwards for films and D7.1230 onwards for TV). The transition to the revised tax relief rules post 1 January 2024 is voluntary but will be obligatory for new productions from 1 April 2025 and for all productions from 1 April 2027, at which point the previous tax reliefs will cease. Where a company elects into the AVEC and the accounting period straddles 1 January 2024, expenditure is apportioned.

The AVEC tax regime includes rules which modify the normal loss relief rules for production companies. Losses incurred by a production company in any accounting period while the film or programme is still in production can only be carried