BFI welcomes extended visual effects tax credit for British films and high-quality television productions

BFI today welcomed the introduction of an increased credit rate for audiovisual expenses of 39% (29.25% after tax) (AVEC) For United Kingdom The visual effects company is working on high-end film and TV productions, the Chancellor’s first autumn budget announced today.

Additional visual effects tax credits will go into effect on April 1, 2025; expenses incurred since January 1, 2025 will be taken into account. In addition to the fact that the increased benefit rate represents a 25% increase over the previous rate, United Kingdom Visual effects costs will also be exempt from tax. AVEC80% limit on qualifying expenses. The measure was announced in this year’s Spring Budget and will be enshrined in the 2024/25 Finance Bill.

It is also an intervention that BFI and the sector has long fought for and will continue to help attract and retain visual effects work in United Kingdom in an increasingly competitive environment at the international level.

“Today’s Budget announcement introduces additional tax incentives for visual effects work in United Kingdom This is great news for our industry and the wider creative industries in a highly competitive international sector,” said Ben Roberts, BFI Chief Executive Officer. ” United Kingdom is proud to be home to some of the world’s most innovative and creative visual effects companies, creating jobs in a field that bridges creativity and digital innovation. We also welcome the Government’s £3 million investment in increasing opportunities for young people to consider careers in the creative industries, as well as the £25 million in funding that will support the north-east Crown Works studio. Taken together, these measures demonstrate confidence in our sector’s ability to increase its contribution to the creative industries and United Kingdom economy”.

The measures announced today include:

• plans to invest £3 million to expand the creative careers programme, giving schoolchildren the opportunity for young people to learn more about career routes and consider careers in the creative industries;
• £25 million funding for the North East Mayors’ Joint Authority (GERMAN) which will invest it in the Crown Works Studio, supporting the North East’s creative industries and is expected to create around 8,000 new jobs in the region;
• transforming the apprenticeship levy into a more flexible growth and skills levy by investing £40 million to help build a new framework and shorten apprenticeship periods;
• continued funding of the Growth Generation Program and United Kingdom Games Foundation; And
• permanent reduction of business rates from 202/2027 for retail, hotel and leisure facilities (RHL), including cinemas. In addition, for 2025/2026 RHL Properties will receive a 40% discount on the amount of business tax they must pay.

Earlier this month, the government announced the adoption of the Expanded AVEC for low budget films/independent film tax credit (MFTK) was fully enshrined in law. Warmly received by the industry MFTK means that from April 1, 2025 United Kingdom Films with total core expenses of less than £15 million are eligible for a relief of 53% of qualifying expenses. Films with total core expenses of up to £23.5 million may qualify, but can only claim a maximum of 80% of the £15 million core expenses.

Details about MFTKinstructions, application forms and brochures are published on the Internet. BFIThe certification department can now accept applications for advanced AVEC/MFTK.