Enhanced AVEC (Independent Film Tax Credit)

Enhanced Audio-Visual Expenditure Credit (AVEC) is one of the most generous incentives introduced for the UK independent film sector.

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Independent filmmaking sits at the heart of what we do at Alliotts Media. For decades, we’ve worked alongside indie filmmakers, helping turn creative ambition into reality.

That’s exactly why the Enhanced Audio-Visual Expenditure Credit (AVEC) has been championed by both us and the wider industry, it’s one of the most generous incentives ever introduced for independent film in the UK.

So, how does Enhanced Audio-Visual Expenditure Credit work?

Eligible films can claim an Enhanced AVEC at a rate of 53% on qualifying expenditure.
After corporation tax, this delivers an effective cash benefit of 39.75%.

Here’s what that means in practice:

The credit applies to 80% of qualifying core expenditure (net relief 31.8%)

Or 100% of UK expenditure, if the total UK spend is under 80% of total core expenditure (typically this calculation will be applicable where a production spends part of the production outside of the UK (net relief 39.75% of UK spend only).

How much can you claim?

AVEC can be claimed on up to £15 million of qualifying core expenditure

No minimum spend is required

In practice, this applies to films with total core expenditure of up to £23.5 million

Assuming a 25% corporation tax rate, the maximum cash repayment is £4.7 million

Do you qualify for Enhanced Audio-Visual Expenditure Credit?

To be eligible, a film must meet one of the following criteria:

  • Have a UK writer (national or resident), or
  • Have a UK director (national or resident), or
  • Be certified as an official UK co-production

If you have any questions or need advice on Enhanced Audio-Visual Expenditure Credit please do get in touch

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Speak to a specialist media accountant

We’re here to help you make your project a success. If you’re looking for experienced media accountants and tax advisers who understand film and television, our specialists would be happy to help.

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

    Enhanced AVEC (Independent Film Tax Credit)https://www.alliotts.com/sectors/media-accountants/enhanced-avec-independent-film-tax-credits/
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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