Written by Kianna Best on Jan 3, 2024. Posted in Incentive News

British film, TV and video makers receive improved tax credits

The new year has brought with it more generous tax credits for Britain’s film, TV and video makers. Announced on 1 January, the government announced that children’s TV, animated TV and animated film production will receive a n extra GBP 42,500 in relief, and high-end TV, film or video game production will receive a relief of GBP 5,000. The government’s Audio-Visual Expenditure Credit and the Video Games Expenditure Credit replaces the previous tax reliefs for film, TV and video games.

“We are backing the makers of the next Barbie, Happy Valley and Grand Theft Auto with this new, more generous, tax credit system for British production talent,” commented Nigel Huddleston, Financial Secretary to the Treasury. “The UK is a world leader in creativity, and we want to ensure that continues well into the future by making it easier for British film, TV and video games to thrive.”

Image courtesy of Warner Bros

Last year, the UK saw an influx of Hollywood blockbusters filming across its regions, but concerns over tax relief see visual effects works completed elsewhere. Combatting those concerns, the UK government have taken action towards improving those reliefs, revamping the current system. Applicable to the whole of the UK, the refreshed system aims to promote more flexibility over production decisions, maximising the potential of UK talents in the audio-visual sector.

For GBP 1 million of qualifying expenditure, children’s TV production, animated TV production or film will receive an additional GBP 42,500 in relief under the new system, marking a higher credit rate of 39%, whilst high-end TV production , film production and video game will receive GBP 5,000 at a credit rate of 34%.

Whilst the UK industry still maintains concerns over elements such as the 80% expenditure cap, the newest relief system improvements will expand production potential. Valued at GBP 126 billion, the UK industry continues to build on its talent development, creative job opportunities, as well as last year’s announcement of Warner Bros Leavesden, Hertfordshire based studio expansion.