Back to homepage
Industry News

Jeremy Hunt Increases Film and HETV Tax Credits and Studio Business Rates Reliefs in Spring Budget

Wed 6th Mar 2024

Jeremy Hunt has reiterated the UK Government’s commitment to the country’s film and TV industry in today’s Spring Budget. The Chancellor pledged to provide more tax relief for visual effects in film and HETV, introduce an extended indie tax credit for films that have budgets under £15m, and extend a 40 per cent relief on gross business rates until 2034 for eligible film studios.

We have become Europe’s largest film and TV production centre with Idris Elba, Keira Knightley and Orlando Bloom all filming their latest productions here,” said Hunt. ”Studio space in the UK has doubled in the last three years and at the current rate of expansion, next year, we will be second only to Hollywood globally.”

From 1 April, the rate of tax credit will increase by 5% alongside the removal of the 80% cap for VFX costs in the audiovisual expenditure credits (AVEC). Films and high-end TV (HETV) programmes currently have a headline credit rate of 34%. This equates to 25.5% in actual relief, capped at 80% of core expenditure, but with no budget limit. This increase will bring the headline rate to 40%.

A person looking at the camera

Description automatically generated

PGGB CEO Lyndsay Duthie said: “The government’s acknowledgement of the success of inward investment and commitment to British Film and HETV is highly encouraging, with support echoed across the House. Ensuring the UK’s own pipeline of independent film through the added tax relief is a critical move for domestic film production, helping to protect a sector of the industry key in developing talent and sustaining and creating jobs across the economy. We remain positive that productions will return to previous high levels very soon, utilising the UK’s hugely talented workforce.”

The 40% tax credit will also be rolled out to films with budgets between £1m and £15m, in support of the UK’s indigenous production sector. To qualify for the UK’s creative sector tax incentives, all films, animation and television programmes or video games must be certified as British through the cultural test or qualify as an official co-production.