Autumn Statement: Tax incentives for the Film and TV industry
As expected the Chancellors Autumn Statement again confirmed its ongoing Government support for the film and television sector. Inward investment by overseas streaming companies and studios has created thousands of new jobs in the UK and has been a major... Read more
As expected the Chancellors Autumn Statement again confirmed its ongoing Government support for the film and television sector. Inward investment by overseas streaming companies and studios has created thousands of new jobs in the UK and has been a major boost for the economy.
As the performance of the film and television sector in the UK has outshone most others, it’s no surprise that Mr Hunt is keen to attract investment into the sector by continuing to offer favourable tax reliefs to the creative industry.
These key changes and initiatives were announced in the Autumn Statement:
Creative Industries: call for evidence on the visual effects industry – The government has published a call for evidence on recent trends in the visual effects industry. This will inform the design of additional tax relief for expenditure on visual effects, which the government intends to deliver through the Audio-Visual Expenditure Credit. The government intends to consult on the detailed policy design of further support and intends to implement changes to the expenditure credit from April 2025.
Extension of uplifted relief for animated TV to include animation film – As previously announced, animated feature film will be eligible for a 5% uplift in relief under the Audio-Visual Expenditure Credit.
High-end TV relief: amending documentary definition – The government has amended the proposed definition of a documentary. The new definition is aligned with the guidance used by the British Film Institute and will apply to the Audio-Visual Expenditure Credit, which will be legislated for in the Autumn Finance Bill 2023.
Amendment to rules for connected party transactions in creative industry tax reliefs – The proposal to cap the relief that companies can receive on connected party transactions has been amended. Companies will now be required to disclose connected party transactions and charge connected parties at an arm’s length price. This will be legislated in the Autumn Finance Bill 2023.
Creative Industries – the government will provide £2.1 million of new funding for the British Film Commission and the British Film Institute Certification Unit for 2024/25. The government will also review the evidence on public investment in R&D spending for the creative industries to a Spending Review timeframe.
After a stagnant 6 months this year as a result of the writer’s and actor’s strikes in the US, we anticipate that Film and Television production in 2024 will be full on to make up for lost time and to finish productions that were put on ice.
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