Film Tax Relief

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Film Tax Relief

The first tax relief aimed at creative industries was the Film Tax Relief, originally established in 2007 to aid the production of films in the UK. The relief was further enlarged to include a multitude of other industries and creative departments, such as: animation and children’s television, theatres and orchestra, museums, and video games.

To be able to claim, a company must be qualified as a Film Production Company (FPC). For that to happen, the company must fall under UK Corporation Tax or be incorporated in the UK and present on the Companies House register. Since Film Tax Relief is accessed based on one’s filed Corporation Tax, to either receive a payable tax credit or a reduced tax liability, this is one of the major requirements for Film Tax Relief eligibility. A company must also be involved in all stages of the production, from planning to postproduction activities, and directly negotiate, (sub)contract and pay for goods, services and rights related to the film’s production. A Film Production Company can be an UK company set by an international parent company, and the work can be subcontracted, as long as said work can be shown in the financial accounts of the company.

Film Tax Relief Eligibility

 ‘Does My Company Qualify?’

Here are some of the main eligibility criteria: 

  • You must either pass the Cultural Test or be officially considered a co-production
  • For films, a minimum requirement of 18 points out of the possible 35 points must be achieved to pass the Cultural Test, which contains sections on the content of said production, or cast and crew
  • A film must be meant for theatrical release – usually proven by a typical time length mirroring typical movies shown in commercial cinemas or by an intention to have the production broadcasted in cinemas, even thematical ones
  • Have at least 10% of the costs related to the production connected with UK-based ventures
  • Since the Film Tax Relief started in that year, the first day of main shooting must be set after the 1st of January 2007

Film Tax Relief Additional Information

If a film is to qualify as a co-production on a project instead, there must be a UK company involved in all stages of production for all UK-based elements of the production – and a corresponding company set in the other co-production country. An application must be submitted in both countries, and a co-producer assigned for each country. The UK has agreements on film co-production with: Australia and Canada, New Zeeland, South Africa, France, India, China, Israel, Morocco, Jamaica, and Occupied Palestinian Territories. Out of these countries, Australia, Canada and New Zealand, and Israel and the Occupied Palestinian Territories also include allowances for television programmes. The UK is also one of the countries which signed the European Convention on Cinematographic Co-production. The UK exist from the European Unit has not impacted the Film Tax Relief. 

Film Tax Relief Documentation Requirement

To file for your Tax Relief you will need the following documentation: 

  • British cultural certification that has to be accredited by the British Film Institute (BFI) 
  • Provide statements of your core expenditure which are clearly outlined as either UK or non-UK expenditure 
  • Expenditure breakdown should be categorised 

Additional Funding Opportunities

There are many tax incentives, grants and funding initiatives available to UK businesses. Whether you’re a start-up or an established business, we can provide you with the crucial advice that will help you access additional cash to help your business grow. We are partnered with Counting King, an industry leading firm that specialise in tax incentives that can support you with accessing additional funding support. Get in touch to find out more about what cash is available to you today! 

How Much Film Tax Relief Can I Get?

In this section you will find additional information on how much Film Tax Relief you can receive for your project. 

Threshold

Films are required to meet the minimum spending threshold of 10%. There is no minimum requirements on the budget level of a production.

Threshold

Films are required to meet the minimum spending threshold of 10%. There is no minimum requirements on the budget level of a production.

Film Tax Relief Cap

Tax relief is capped at 80% of the core expenditure, which includes any elements of the actual production stages, including VFX and postproduction.

Film Tax Relief Cap

Tax relief is capped at 80% of the core expenditure, which includes any elements of the actual production stages, including VFX and postproduction.

No Limit

Within that 80%, however, there is no actual limit on the amount of money that can be paid back through the tax relief.

No Limit

Within that 80%, however, there is no actual limit on the amount of money that can be paid back through the tax relief.

For any help or advice please contact us:

Get in touch today to discuss your Film Tax Relief Claim

If you require any additional support with your BFI certification, we provide this service for FREE. 

For any additional information on: 

  • Eligibility criteria
  • How much you can claim 
  • How we can support you and your company throughout the process of the claim 
  • Our additional services to support your  business growth 


Just fill out the contact form with a short message about what your query is and one of our experts will get in touch with you. 

Take advantage of our FREE 1 hour consultation for any additional services that you’d like to take advantage of today. 

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Find out more about the process for claiming and what the main benefits of claiming with HDH Accountants are