The UK film industry has received a significant financial boost with the introduction of a 40% business rates relief for film studios. As of 17 February 2025, Local Authorities can begin awarding this relief automatically to eligible studios, reducing operational costs and encouraging more film production in the UK.
Supporting the Creative Industries
The creative sector is a major contributor to the UK economy, employing 2.4 million people and generating £124.6 billion annually. This new Film Studio Business Rates Relief aims to strengthen the industry, supporting existing studios and attracting new productions. The relief will be available until 2034 and can be backdated to 1 April 2024 where applicable.
Additional Tax Reliefs for Film & TV Productions
This business rates reduction is just one of several tax reliefs available to the UK film and TV industry, including:
- Audio-Visual Expenditure Credit (AVEC): Offers a 34% tax credit on UK production costs for films and high-end TV productions, increasing to 39% for animations and children’s TV programmes.
- New Visual Effects Credit: From 1 April 2025, a 39% tax credit will be available on UK visual effects (VFX) costs for film and high-end TV productions.
- Independent Film Tax Credit: Also launching in April 2025, this will provide an enhanced 53% rate for eligible independent films with budgets under £15 million.
Boosting UK Film Production
The UK government recognizes the economic impact of the film and TV industry and aims to maintain the country’s position as a global production hub. These incentives will help production companies reduce costs, invest in new projects, and create more jobs.
Need Help Maximizing Your Tax Reliefs?
Navigating tax reliefs can be complex, but we’re here to help. If you’re in the film or TV industry and want to ensure you’re taking full advantage of these financial incentives, contact us today. Our experts can guide you through eligibility, claims, and strategy to maximize your savings.
For more details, visit the official government announcement: Government News.