Articles12 Jun 2024
Resurgent Cannes: The 2024 Film Festival and the UK Independent Film Tax Credit
Now that the red carpet has been rolled away, it’s time to reflect on this year's Cannes film festival
Articles
As news continues to filter out on this unexpected announcement in today's Budget and we look for more detail, this is what we know so far
Spring Budget 2024 – The Independent Film Tax credit – What we know so far….
Though there have been many calls for the government to do more for the UK independent film industry. Many would not have expected the scale of the announcement.
As news continues to filter out and we look for more detail, this is what we know so far:
The New Independent Film Tax credit (IFTC) will have a headline rate of 53.3%
The IFTC will be eligible for production budgets of up to £15m, excluding marketing and distribution costs.
The new credit will be taxable therefore assuming the company pays tax at 25%, the effective rate will be 40% of the 80% applicable expenditure.
There will be additional criteria set out by the BFI and the production will need to have one of the following:
Only productions commencing principal photography on or after April 1 2024 will qualify, with costs incurred from that date onward being eligible.
If claiming under the new IFTC, productions will not be able to claim separately under AVEC, 39% Animation, or the new Visual Effects tax relief.
Additionally, those working on TV production will not be eligible to claim under the IFTC.
Further clarification is needed regarding the requirement that productions claiming IFTC need a ‘Theatrical release,’ seemingly different from the current need for an ‘Intention for theatrical release.’ This could have far-reaching consequences, so we are looking for clarification at the time of writing.
To illustrate the differences below is a comparison between all three film tax incentives at a budget of £15M:
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Assistant Manager, Media Team
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