The UK government has officially enacted the much-anticipated Independent Film Tax Credit, with relief available for qualifying films starting October 30.
The credit was confirmed this morning by UK Culture Secretary Lisa Nandy as the BFI London Film Festival begins its 11-day run in the capital.
Under the new tax credit, first-time productions with budgets up to £15 million will be eligible for a 53% relief on qualifying expenditure. Films with budgets up to £23.5 million are also eligible for the IFTC. To qualify for the relief, productions must have commenced principal photography on or after April 1, 2024, and only expenses incurred on or after that date can be claimed. Additionally, films must pass a BFI cultural test.
“The UK’s first-class independent filmmakers have a track record of creating cult classics and surprise hits that are enjoyed by millions,” Nandy said in a statement this morning confirming the credit. “Their films showcase British culture and creativity to the world while also supporting thousands of jobs and driving economic growth in all parts of the UK.”
She added: “These reliefs will pay dividends both culturally and economically, inspire the next generation of talent across the country, deliver more great British content, and sustain a world-leading industry here in the UK.”
The tax credit was part of an expansive package tabled by the last British government to invest in the British cultural industry. The package also included a £26M upgrade to the National Theatre’s stages and infrastructure, and an additional £10M for the National Film & Television School.
Introduced more than a decade ago, the UK’s film and high-end TV tax credit has been hugely successful, attracting numerous shows from major streamers and studios to the nation and making it easier to get local productions off the ground. The new indie film relief aims to support a sector struggling with rising costs amidst stagnating budgets for BBC Film and Film4 in recent years.
Ben Roberts, BFI Chief Executive, added: “This is great news for UK film and is already having a positive impact across our industry. More films can now be made in the UK that audiences at home and internationally will get to enjoy. Independent filmmaking is vital to our cultural expression and creativity, it builds careers for talent in front of and behind the camera, and also showcases UK creative excellence on a world stage. We’re grateful to Government, the DCMS, and the industry for working together to establish this transformative tax relief uplift where it is most needed.”
