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UK film expenditure

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.

At least 10% (25% if the principal photography was completed prior to 1 April 2014) of the core expenditure incurred by a film production company, or, in the case of a qualifying co-production, by the co-producers¹ on a film, must be UK expenditure².

Core expenditure refers to production expenditure on pre-production, principal photography and post production. 'Production expenditure' means expenditure on film-making activities in connection with the film³.

In calculating the amount of