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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.

Qualifying production companies as described in D7.1202 can claim AVEC on qualifying films and TV programmes as detailed in D7.1202A. There are specific calculation rules which determine the qualifying expenditure on which AVEC can be claimed (see D7.1202B). The amount of credit under AVEC is calculated as set out below.

AVEC can be claimed for the period in which the company elects to opt