14 April 2024 The Irish Film & Television Network

Irish Film and Television Network




Crew News

UK government reveal 40% Independent Film Tax Credit (IFTC)
06 Mar 2024 : News Desk
Film Crew
The UK government has unveiled details of a new tax credit for supporting UK independent films as part of UK chancellor Jeremy Hunt’s spring budget. Following this, Sky Group CEO Dana Strong announced that Jurassic World 4 will shoot in the UK.

The newly unveiled tax credit is titled the Independent Film Tax Credit (IFTC), under which eligible films will be able to opt-in to claim enhanced Audio-Visual Expenditure Credit (AVEC), at a rate of 53%, on their qualifying expenditure. This equates to approximately 40% in relief.

Following the announcement, Sky Group CEO Dana Strong confirmed a UK shoot for Jurassic World 4.

“We’re delighted that the [UK] Chancellor [Jeremy Hunt] called ‘Cut’ today on TV and film studio business rates, providing vital tax relief to enable the UK’s world-class film and TV production sector to continue to thrive,” said CEO Strong. 

She continued: “Today’s announcement brings confidence to the sector, unlocking job opportunities whilst providing a stable foundation for the investments of tomorrow in the UK, such as our proposal for Sky Studios Elstree North and the filming of NBCUniversal’s Jurassic 4.”

In order to be eligible for the IFTC, films will need to have production budgets (excluding marketing and distribution) of up to £15m.

In accordance with a new British Film Institute (BFI) test for measuring eligibility criteria, films need to meet at least one of the following conditions: have a UK writer, a UK director, or be certified as an official UK co-production.

Furthermore, eligible projects must have started principal photography on or after April 1st 2024, and only expenditure incurred on or after April 1st 2024 can be claimed. 

Productions will also need to have a theatrical release to qualify, and the tax credit will not be available for TV programmes. If claiming the IFTC, separate claims for the newly-introduced 5% visual effects and animation uplifts cannot be made.

The newly unveiled IFTC tax credit is an optional enhanced tax credit for productions that already meet the conditions of AVEC, which includes productions certified as culturally British by the BFI, productions made by a UK production company, and at least 10% of a production’s core expenditure must be used or consumed in the UK.

Qualifying companies can claim the IFTC on up to 80% of its core expenditure on a film, or on the amount of UK core expenditure, if that is less. For example, a film with a £15m budget would have a maximum of £15m total core expenditure, of which £12m (80%) would qualify for ITFC, provided all of that £12m was used and consumed in the UK. 

The IFTC is subject to corporation tax at the applicable rate.

The BFI will assess film budgets to certify that IFTC films meet the budget condition. In the case of films with a budget exceeding £15m, the production company can choose either to continue to claim IFTC at 53% up to a maximum of £6.36m credit before tax, or to claim AVEC at 34% on all its qualifying expenditure.

Claims can be submitted to HM Revenue & Customs from April 1st 2025 onwards, in respect of expenditure incurred from April 1st 2024, as long as a film began principal photography after April 1st 2024.

IFTA Q&A Series: Patricia Kelly on Directing
IFTA Q&A Series: Damien Lynch on Sound Design
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