“Independent Film Tax Credit is a game-changer”

“Independent Film Tax Credit is a game-changer for British Cinema” says leading Co-Producer Mike Goodridge.

The overwhelming feedback we’ve had from meetings over the past three days at the Berlin Film Festival is that the UK’s Independent Film Tax Credit (IFTC) and the increased tax relief for visual effects in film and High-End Film are having a positive impact on the UK’s film and TV sector.

At a panel session organised by the British Film Commission (BFC), British Film Institute (BFI) and London & Partners, Adrian Wootton, Chief Executive of the BFC said “The IFTC has had a galvanising effect and is going to further enhance the opportunities for co-productions. It is attracting more investment internationally from the US, and not just from US Studios and Streamers. We are seeing a lot more different kinds of US Financing.” He added: “We are going to see co-productions in the UK that we haven’t seen in 20 years.”

The IFTC offers an enhanced 53% credit which equates to 40% in actual relief for films with eligible expenditure under £15 million for 80% of UK qualifying spend. To qualify films must have a UK Director, Writer or be an official UK co-production. The UK has 12 bilateral co-production treaties and has signed a European convention on cinematic co-production.

For films over £15 million, the standard AVEC has a 34% headline rate, equating to 25.5% in actual relief. Both AVEC and IFTC work on a used and consumed basis.

Wootton was joined on the first panel by prolific UK co-producer Mike Goodridge, founder of Good Chaos who said: “The cost (of production) has gone up, but the value hasn’t necessarily gone up. IFTC is a game-changer for British cinema.” Goodridge is a serial international co-producer who has had productions based in China, Japan, Iceland and India. He is currently working Wayne Wang’s ‘Diary of a Mad Old Man’, set to shoot in Japan, Switzerland, Italy alongside US co-producers.

Goodridge summed up the new regime saying: “The IFTC is very user-friendly. It’s simple to use and you can charge foreign actors and crew onto the tax credit. I think that’s pretty great.”

These comments echo the enthusiasm and positivity that we encountered when meeting and speaking with people throughout the festival.

It really is a very exciting time for UK film and high-end TV production. Next stop Cannes!

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