Responding today (15 March 2023) to the UK Chancellor of the Exchequer’s Spring Budget, which sets out a package of reforms to the audio-visual tax reliefs, the British Film Commission welcomed the package of measures, which clearly demonstrates Government’s recognition of and commitment to the continued growth and success of the UK’s film and high-end TV sector.

The Government outlined their proposals for the audiovisual tax reliefs, namely that following a public consultation, the film, TV and video games tax reliefs will be reformed, becoming expenditure credits instead of additional deductions from 1 April 2024. A new Audio-Visual Expenditure Credit will replace the current film, high-end TV, animation and children’s TV tax reliefs. Film and high-end TV will be eligible for a credit rate of 34% and animation and children’s TV will be eligible for a rate of 39%. The expenditure threshold for high-end TV will remain at £1 million per hour, although the minimum slot length would be reduced to 20 minutes.

Adrian Wootton OBE, Chief Executive of the British Film Commission, said:
“Today’s announcement is a real recognition from the Government of the growth and opportunity our UK Film and high-end TV industry presents. The UK’s tax reliefs have directly influenced many productions’ decisions to base themselves in the UK, contributing billions of pounds to the economy and hundreds of thousands of jobs across the UK’s nations and regions. With increasingly intense international competition, we’re delighted to welcome this package of measures, future-proofing the UK’s film, high-end TV and animation tax credits and our position as a leading global production hub.

“While much of the detail is yet to be worked through, today’s announcement demonstrates a strong commitment from Government to continuing to support the growth of our film and TV sector, creating jobs and opportunities in all four UK nations and region for years to come.”

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