D7.1204 The taxation of film production companies
The following rules apply to accounting periods ending before 1 January 2024. From 1 January 2024 tax relief for films and TV productions is given through the audio-visual expenditure credit (AVEC), see D7.1202. 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.
Introduction to film production companies
Film production companies are subject to a specific regime of taxation and have access to particular tax reliefs provided certain conditions are satisfied. Relief is given either by way of an additional deduction for corporation tax purposes or a repayable tax credit.
One of the aims of the legislation is to focus the relief on the film producers, rather than financial investors (and thus apparently eliminating the need for
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