What is UK Film Tax Relief?
How do I access UK Film Tax Relief?
Film Production Companies
UK Film Tax Relief is available to the FPC responsible for the film on the condition that it falls within the UK corporation tax net.
The FPC is defined as the company responsible for the principal photography and post production of the film and for the completion of the finished film. (There is no requirement for the film rights to be owned by the FPC at the time the film is completed).
What is the minimum UK spend?
A minimum of 10% of costs must be spent on UK qualifying production expenditure.
What qualifies as expenditure?
UK qualifying production expenditure is defined as expenditure incurred on filming activities (pre-production, principal photography and post production) which take place within the UK, irrespective of the nationality of the persons carrying out the activity.
HM Revenue & Customs’ (HMRC) definition of UK spend introduces the concept of where a good or service is “used or consumed” in the UK. If they are used or consumed in the UK, the expenditure is treated as UK expenditure (under the rules set out in the clauses of the Finance Bill). If they are used or consumed outside the UK, they do not count as UK expenditure.
The Cultural Test
Qualifying a film as British can enable producers to access the UK’s film tax relief. The Cultural Test can also be applied to qualify high-end television programmes, animation, children’s programmes and video games as British and to access the UK’s creative sector tax reliefs.