Companies in the UK that produce films (including television and video productions) are subject to special tax rules which determine how the taxable profits of the film-making activities are to be calculated and how any losses may be applied.
Film Tax Relief is available to those engaged in the making of a British film that is intended for theatrical release, and on which at least 10% of core expenditure is incurred on goods or services used or consumed in the United Kingdom.
Both the additional deduction and the payable credit are calculated on the basis of UK core expenditure (that is expenditure on pre-production, principal photography and post-production) up to a maximum of 80% of the total core expenditure,
The levels of the additional deduction and payable credit are dependent of the size of the film’s budget. For a limited-budget film (one whose core expenditure is £20 million or less) the additional deduction is 100% of qualifying core expenditure and the payable tax credit is 25% of losses surrendered. For other films, the rates are 80% and 20%.
FTR is available to films that:
- commenced principal photography on or after 1 January 2007; or
- commenced principal photography before 1 January 2007, but were still uncompleted.
Film Tax Relief is administered by HM Revenue & Customs (HMRC).
Companies that produce films (including television and video productions) are subject to special tax rules which determine how the taxable profits of the film-making activities are to be calculated and how any losses may be applied.
These rules apply to all film production companies whether or not they are producing films intended for release in the cinema.
Some films are eligible for Film Tax Relief (FTR). This relief can increase the amount of expenditure that is allowable as a deduction for tax purposes or, if the company makes a loss, can be surrendered for a payable tax credit.
A film is British for these purposes if it meets a 'cultural test' or qualifies by virtue of an internationally agreed co-production treaty. Qualification is administered by the British Film Institute (BFI) on behalf of the Department for Culture Media and Sport.
The Film Production Company (FPC) responsible for the production of the film can apply for an interim certificate that the film is British at any point before or during production, to BFI. The FPC can then make a claim for FTR by submitting this certificate with their claim, made in its Corporation Tax Return to HM Revenue & Customs (HMRC).
Although there are no specific exclusions cited within the programme guidelines, those wishing to apply are advised to liaise with HMRC in the first instance to discuss eligibility.
Companies that produce films (including television and video productions) in the UK are eligible.
A film is British for these purposes if it meets a 'cultural test' or qualifies by virtue of an internationally agreed co-production treaty. Qualification is administred by the British Film Institute on behalf of the Department for Culture, Media and Sport.
Match funding is not a stipulated requirement of this programme.
The films that qualify for the relief are British films that are intended to be shown commercially in cinemas and of whose total production costs at least 25% relate to activities in the UK.
Film production companies can opt out of these rules if they wish. Their films will not then be eligible for the additional relief for British cinema films.
The programme is not subject to deadlines.
Frequency: Rolling programme.
Link to guidelines:
Further advice and assistance with submitting an application may be sought directly from HMRC.