United Kingdom film tax incentive

What United Kingdom actually pays

A credit that pays out in cash when it exceeds what you owe the state. Close to a rebate for most independent productions.

New to the mechanics? Tax credit vs rebate vs grant and What counts as qualified spend.

What qualifies

Film must be intended for theatrical release; high-end TV must be drama/comedy/documentary with avg core cost ≥£1M/hr of slot and slot >20 min/episode. Must pass BFI cultural test or qualify as an official co-production; ≥10% of core spend in the UK. Animation & children's TV qualify at 39%.

• Animation
• Scripted TV
• Feature Film
• Post-Production
• Streaming / SVOD

Uplifts

Rate bumps that stack on the base program, up to its published ceiling. Uplifts are the most commonly missed money in any program, because qualifying for one is usually a location or scheduling decision made long before anyone is thinking about submittal.

• Independent Film Tax Credit (IFTC)

  53% instead of 34% for films certified by the BFI as low-budget: total core expenditure (including co-producers' spend and anticipated contingent compensation) not above GBP 23,500,000, and a UK writer, a UK director or official UK co-production status. The base is the lower of UK core expenditure or 80% of total core expenditure, calculated on no more than GBP 15,000,000 of core expenditure. [basis: qualified-spend]

  Minimum spend: At least 10% of core expenditure must be UK expenditure. No minimum budget.

  +53%

• AVEC Additional Credit for Visual Effects

  Relevant visual effects expenditure (UK expenditure on visual effects work carried out in the UK) is relieved at 39% instead of 34% and is exempt from the 80% cap on total core expenditure. Available only to high-end TV and to films that are neither animated nor certified independent films. [basis: specific-spend]

  Minimum spend: N/A

  +39%

City, county & regional programs

Local incentives that can stack on top of the state program — but each defines its own qualified spend, caps and residency rules, so their rates can't simply be added to the state percentage. Worth a call before you count on one.

• Screen Scotland Production Growth Fund

  Grant of GBP 200,000 to GBP 500,000 against Scottish Spend (pre-production, principal photography, visual effects and post-production in Scotland and Scotland-based crew; above-the-line costs only for individuals ordinarily resident in Scotland). Scottish Spend must be at least 10 times the award, so the grant is at most 10% of Scottish Spend. [basis: specific-spend]

  Minimum spend: GBP 2,000,000 Scottish Spend

  10%

• Creative Wales Production Funding

  Discretionary grant against Welsh Spend. Scripted: GBP 50,000 to GBP 750,000 with Welsh Spend at least 10 times the award. Non-scripted: GBP 50,000 to GBP 300,000 with a minimum 6:1 ratio. Animation: minimum 8:1 ratio. Awards are set at the minimum needed for the project to take place in Wales. [basis: specific-spend]

  Minimum spend: No fixed minimum; Welsh Spend must meet the minimum ratio to the award (scripted 10:1, animation 8:1, non-scripted 6:1)

  10%

Grants & funds

Grant funds and fellowships available to productions here, including national programs. Awarded competitively rather than earned on spend.

• UK VAT refund for non-UK businesses (VAT Notice 723A)

  Refund of 20% UK VAT on qualifying costs

  Minimum spend: NA

How to apply

Obtain an interim then final British certificate from the BFI Certification Unit (cultural test or official co-production). Claim the credit in the production company's Company Tax Return with the additional information form, the BFI certificate and a statement of UK and non-UK core costs. Returns filed on or after 6 April 2026 must include the CT600P supplementary page. Claims may be made up to 2 years after the end of the period of account.

Common questions

What is the United Kingdom film tax incentive rate?

United Kingdom offers 34% to 39% on qualified in-state spend through the Audio-Visual Expenditure Credit (AVEC). It is a refundable credit. A credit that pays out in cash when it exceeds what you owe the state. Close to a rebate for most independent productions.

What is the minimum spend for the United Kingdom film incentive?

At least 10% of core expenditure must be UK expenditure. High-end TV drama, comedy and documentary: average core expenditure of at least GBP 1,000,000 per hour of slot length, with a slot length over 20 minutes. No minimum for film.. Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.

What uplifts are available in United Kingdom?

United Kingdom offers 2 uplifts on its headline program: Independent Film Tax Credit (IFTC), AVEC Additional Credit for Visual Effects. Uplifts are usually decided by scheduling and location choices made months before submittal.

Are there city or county film incentives in United Kingdom?

Yes — Screen Scotland Production Growth Fund, Creative Wales Production Funding. Local programs generally stack on top of the state incentive but define their own qualified spend, caps and rules, so their rates can't simply be added to the state percentage.

Is the United Kingdom film incentive transferable or refundable?

Refundable — the excess over your state tax liability is paid out in cash.

Verify before you budget. These figures come from our own incentives database and each shows when it was last reviewed — but programs change between funding cycles and legislative sessions. Confirm with the film office, or ask us, before a number goes into a budget.