Tax credits can be a minefield if you’re not familiar with them. We guide you through the process, step by step. Below are the key highlights of how the UK system works.
The UK film and TV tax credit is one of the most reliable and efficient in the world: Films and high-end TV (HETV) qualify for 25.5% (AVEC), or up to 39.75% (Enhanced AVEC) on budgets under £15M.
• Eligible Spend: Applied to up to 80% of total core costs, or to the actual UK spend (including above-the-line talent, directors, producers, and crew — regardless of nationality).
• Cultural Test: Project must pass the UK’s test with 18 out of 35 points.
- Example: Up to 6 points if the film is in English, a UK minority language, or a European Economic Area (EEA) language.
- Example: Up to 2 points if at least one of the three lead characters is British or from the EEA.
• Non-UK Directors or Writers: Even if the director or lead writer is non-UK (e.g. a USA citizen), the project can still qualify by structuring as an official co-production with one of the UK’s treaty partners.
