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The separate film production trade

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.

The production activities of a film production company in relation to a film beginning principal photography on or after 1 January 2007 are treated as a separate trade of that company. The activities are separate from any other activities of the company, including any activities relating to another film¹. Profits and losses are therefore calculated separately for each film that the company produces. In the case of a series of films, each