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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.

A film production company may claim an additional deduction for corporation tax purposes in respect of qualifying expenditure¹. For these purposes, 'qualifying expenditure' refers to core expenditure that would normally be taken into account² in calculating the profit or loss of the trade for tax purposes. Core expenditure is production expenditure on pre-production, principal photography and post production. 'Production expenditure' means expenditure on film-making activities in connection with the film³. The Treasury may amend the definition of qualifying