Audio-Visual Expenditure Credit (AVEC)

AVEC: The new financial foundation for UK film and TV production.

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Producers involved in making films, high-end TV, animation, or children’s TV programmes, can apply for the Audio-Visual Expenditure Credit (AVEC), the new essential financial support from the UK government.

Simply put, AVEC is replacing all the old creative tax reliefs—Film Tax Relief, HETV Tax Relief, etc.—and combining them into a simpler, modern system. The goal is to make the UK even more competitive globally, keep the creative process transparent, and provide powerful financial incentives that reward spending money in the UK.

How does AVEC work?

AVEC works as a cash credit claimed through a company’s tax return, offering a percentage back on the money spent on core production activities in the UK.

How to qualify for AVEC (the rules)

To access any of the AVEC rates, a production must meet four primary conditions:

  1. Be a UK Production Company: The company responsible for the pre-production, principal photography, and post-production must be subject to UK Corporation Tax.
  2. British Certification: The film or programme must be certified as culturally British by the British Film Institute (BFI). This is usually done by passing the BFI Cultural Test or qualifying as an official co-production.
  3. Minimum UK Spend: At least 10% of the production’s total core expenditure (the costs of making the content, excluding development and distribution) must be incurred, used, or consumed in the UK.
  4. Qualifying Genre/Format: The project must be one of the eligible formats (intended for theatrical release for film; drama, comedy, documentary, or animation/children’s TV for television).

A note on the 80% cap: For most AVEC claims, relief can only be claimed on up to 80% of the project’s total core expenditure, even if the actual UK spend is higher. The main exception is the new VFX Uplift, which removes this 80% cap for eligible visual effects costs.

What producers need to know

AVEC is not just a replacement; it’s a simplification and a targeted boost. When planning a production, especially one that is animation-heavy, aimed at children, or features significant visual effects, the UK’s new credit system offers some of the highest financial returns available globally.

More information

Please see our dedicated pages for detailed information on:

High-End TV Expenditure Credit

Children’s TV and Animation Expenditure Credit

Enhanced AVEC (Independent Film Tax Credit)

VFX Tax Credit

If you have any questions or need advice on AVEC please do get in touch

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Get in touch to discuss your production and find out how Alliotts Media can support you.

    Audio-Visual Expenditure Credit (AVEC)https://www.alliotts.com/sectors/media-accountants/audio-visual-expenditure-credit-avec/
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    David Gibbs | Alliotts

    David
    Gibbs

    Partner

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    David is an International Corporate Tax specialist. He has over 30 years’ experience in providing commercially focused tax advice and support to a wide range of clients, from technology start-ups to large inward investing corporates.

    A qualified Chartered Accountant, David went on to qualify as a Chartered Tax Adviser and prior to joining Alliotts as a partner in 2014 he held the position of tax partner in Grant Thornton and subsequently in PwC.

    David focuses on providing strategic tax advice to entrepreneurs and privately owned businesses. By investing time in understanding clients and their businesses he is able to provide advice which is practical and appropriate to clients’ circumstances in order to keep taxes to a sensible minimum. He advises on a wide range of taxes including transaction planning, UK outbound and inbound structuring, corporate tax, technology tax reliefs, investor and shareholder planning, capital gains tax and LLPs. David advises both UK and overseas business owners on international tax planning.

    David also specialises in advising individuals and businesses in the media sector on UK film tax credits, video games tax reliefs and other creative sector tax incentives. He also advises on EIS and SEIS.

     

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    Samuel Ampah | Alliotts

    Samuel
    Ampah

    Senior Manager, Media Team

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    Samuel is a key member of Alliotts Media team, working with production companies and helping produce their accounts. He regularly presents at third party webinars and workshops on a range of areas of interest to media businesses, ranging from tax incentives, accounting and growing a business.

    Samuel is a Trustee of Mama Youth Project and is a member of the Production Guild’s Diversity and Inclusion Group

    As a member of our accounts team Samuel also works with a wide range of UK based and international clients across a variety of sectors. Samuel’s primary role involves delivering accounting, management reporting, VAT and cash flow reporting services to clients. By working closely with Alliotts partners the information Sam provides helps clients ensure that they remain compliant with their filing deadlines and have the financial data they need to make key decisions.

    Testimonials

    “I’ve been lucky enough to have Sam over to the NFTS for 2 years running to speak on a Marketing, Distribution, Sales & Exhibition Masters. He is great at talking through the financing side of things – particularly given the lack of experience that most of our students have in the industry. He is able to break things down and explain them in a much clearer and straightforward manner. He is extremely personable and is always a hit with the students.”

    Poonam Sahota, National film and television school


    “Samuel Ampah and the team at Alliotts could not be more helpful. From the earliest stages of closing, Sam has been readily available to any and all advisors on the show to explain and reassure on the criteria and complexities of the UK film tax credit specific to the needs of the production, going so far as to create his own spreadsheets to verify the producer’s calculations and responding. to every related query by return. As the legislation and HMRC guidelines evolve, it’s reassuring to know Alliotts is in front of developments adding the weight and wisdom of an experienced team of advisors. That Ian Gibbon is a genuine cinephile and Sam enthusiastic about the project’s potential impact only enhances the engagement. Thank you.”

    Mary McGuckian, pembridge pictures.


    “Samuel is a safe pair of hands, with a robust and thorough understanding of all areas of accounting and finance relating to the film sector. He’s also a great speaker, with a knack for putting clients at ease, and explaining (sometimes complex) financial strategies and considerations in a way that is both concise and accessible.”

    Film City Futures