UK Audio-Visual Tax Credits: What Producers Need to Check

UK production incentives change over time, so producers should check the current rules before building a finance plan around them. The former film and television tax reliefs are being replaced by Audio-Visual Expenditure Credits (AVEC) for new productions. A production may need to qualify as British through the cultural test or an official co-production route. The British Film Institute manages certification, and the requirements depend on the type of production and the credit being claimed. Before relying on an incentive, check: • whether the production is eligible under the current scheme; • whether the project meets the relevant cultural or co-production requirements; • which expenditure is qualifying and where it is incurred; • what evidence and audit material must be kept; and • how the credit fits with the wider finance plan and production timetable. The company responsible for the production will normally need to be actively involved in planning and decision-making and to contract and pay for the relevant rights, goods and services. The claim is made through the company’s Corporation Tax return, with the required creative-industries information. Rules, rates and deadlines can change. Treat published guidance from HMRC and the BFI as the starting point, and take specific tax or accounting advice where the production structure requires it. A production budget should show clearly which assumptions are confirmed, which are conditional and which still need professional advice. The official guidance should be checked before any application or claim is submitted.