In a major win for UK-based independent filmmakers, the government has introduced a significantly enhanced tax relief: the Independent Film Tax Credit, offering an Audio-Visual Expenditure Credit (AVEC) at 53% for qualifying productions. Launched in April 2025, this is now one of the most generous incentives globally for lower-budget filmmaking — and it’s designed to give independent producers a serious competitive edge.
The goal is to support more diverse and independent storytelling, while reinforcing the UK’s status as a world-class production hub. But this tax credit isn’t automatic. To qualify, productions must meet a clear set of criteria.
Who Qualifies?
To access the 53% AVEC rate, a production must:
- Have a total budget under £15 million
- Be independent, meaning not controlled or majority financed by a major studio or global streamer
- Spend at least 10% of its core costs in the UK
- Begin principal photography on or after 1 April 2025
- Most importantly: Qualify as a British film
What Does “Certified British” Mean?
To be eligible for any UK creative industry tax relief — including this one — your film must be certified as British by the British Film Institute (BFI). There are two ways to achieve this:
- Pass the BFI Cultural Test, which awards points based on UK content, talent, setting, and language.
- Qualify as an official UK co-production under a treaty agreement with another country.
The BFI manages this process on behalf of the Department for Culture, Media and Sport (DCMS), and certification must be in place before you can claim the credit.
Why This Matters
The 53% tax credit is more than a financial incentive — it’s a powerful tool to help more independent films get made. With access to additional funding, producers can reinvest in better talent, longer shoots, or more ambitious storytelling. In a global market where funding often determines visibility and viability, this initiative could reshape what’s possible for UK filmmakers operating outside the studio system.
It also signals the UK government’s commitment to nurturing local production ecosystems, particularly those that reflect British culture, voices, and creative independence.
How to Apply
To access the AVEC, you’ll need to:
- Apply for British certification through the BFI
- File your claim through HMRC under the Audio-Visual Expenditure Credit scheme
It’s highly recommended that producers consult with a qualified production accountant or tax specialist early in the planning process to ensure full compliance and maximum benefit.
More Information
For official guidance and application details, visit the BFI’s cultural test information page: https://www.gov.uk/guidance/claim-audio-visual-expenditure-credits-for-corporation-tax