Written by Kianna Best on Oct 30, 2024. Posted in General Interest

UK VFX tax credit boost to start in new year

During today’s reading of the UK budget, marking the first for the Labour government  since coming into power in July,  the Chancellor of the Exchequer Rachel Reeeves has confirmed an increased VFX tax incentive. Spending on VFX will be eligible for a net rebate of 29.5% and exempt from the overall 80% cap on spending eligible for film and TV tax relief. To avoid production delays, the starting date of the uplift will be available to projects with spending incurred from 1 January 2025, with claims for the rebate starting from 1 April.

Image courtesy of Valerie Rabchenyuk on Unsplash

VFX is a booming sector of the industry, and the government’s recent investment reflects its value to the UK’s competitiveness on the global stage. With this uplift, the UK is now set to attract an additional GBP 175 million per year of spending on VFX across film and TV (an increase of over 45%), as well as create2,800 new jobs. Reeves also confirmed that GBP 25 million will be invested into Sunderland’s Crown Works Studios.

"The confirmation in the Budget that the VFX rebate will be available from the New Year is terrific news for the UK’s visual effects companies,” commented Neil Hatton, CEO of UK Screen Alliance. “We know that productions are making decisions right now on where to place their VFX work for 2025 and beyond. Today’s announcement means that these clients will be incentivised to place many millions of dollars of inward investment work with the UK’s award-winning VFX community, creating considerable value for the UK economy."

“UK film and TV is globally admired, and a key sector driving economic growth,” added Adrian Wooton OBE, chief executive of the British Film Commission. “Our VFX sector is one of the jewels in the UK industry’s crown, with a depth of creative and technical expertise. But these are competitive times. Productions are looking globally for the best talent and incentives to guide their investment decisions. Any new measures must address intensifying global competition and help us put our best foot forward. Today’s confirmation of the VFX tax credit increase doubles down on UK strengths and will drive up investment. It is not only welcome, but essential to support our sector and wider UK growth.”