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TRENDING
May 31, 2024
UK Indie Film Tax Credit Becomes Law
The UK’s Independent Film Tax Credit (IFTC) has become law, moving on to the statute books just before Parliament is dissolved this week ahead of the UK General Election. By: K Dass.
UK - The UK Indie Film Tax Credit (IFTC) has successfully
become law just before the dissolution of Parliament ahead of the UK General
Election. This development is significant for the homegrown film production
sector in the UK.
The IFTC was
announced by Chancellor Jeremy Hunt on March 6 as part of the Conservative
government’s Spring Budget. There were concerns that the IFTC, which was part
of the 2024 Finance Bill, might not have enough time to pass through Parliament
after Prime Minister Rishi Sunak called the UK General Election for July 4.
However, the Finance
Bill moved swiftly through Parliament last week and finally received Royal
Assent on May 24. Once a bill completes all parliamentary stages in both
Houses, it becomes an Act of Parliament and effectively turns into law.
The IFTC aims to
reinvigorate the UK film production sector by providing tax relief.
Specifically, UK-qualifying films budgeted up to £15 million will receive a tax
relief of 40%.
During the Cannes
Film Festival, UK producers reported significant interest from potential
international partners due to the IFTC, demonstrating its positive impact on
the industry.
Additionally,
starting from April 2025, eligible films budgeted under £15 million will be
able to opt-in to claim an enhanced Audio-Visual Expenditure Credit (AVEC) at a
rate of 53%, which equates to around 40% in relief. The IFTC’s passage into law
is a timely boost for the UK film industry, ensuring continued support for
independent filmmakers and encouraging homegrown productions.
