Skip to content
Beginning last week (17 February), Local Authorities were able to start awarding a 40% reduction in business rates bills to film studios. This tax relief is designed to support the UK film industry and contribute to the production of more box office successes.
The creative industries sector employs 2.4 million people and contributes £124.6 billion to the UK economy. The government aims to increase both of these figures through the introduction of this relief. The Film Studio Business Rates Relief will be available to eligible studios in England until 2034 and, where applicable, can be backdated to 1 April 2024.
Eligible film studios should not need to apply for the relief, as it should be automatically awarded by their Local Authority.
This is one of several reliefs currently available or set to become available to the UK’s film and TV sector. The Audio-Visual Expenditure Credit (AVEC) is already in place, offering a tax credit of 34% on UK production costs for a film or high-end TV programme, increasing to 39% for animation or children’s TV productions.
From 1 April 2025, film and high-end TV companies will also be able to claim a 39% credit on their UK visual effects costs. Additionally, the Independent Film Tax Credit will be introduced. This will apply to eligible films with a budget of less than £15 million, allowing them to claim an enhanced 53% rate.
The film and TV industry is recognised as a significant contributor to the UK economy, with strong potential for further growth.
If you need assistance in understanding which tax reliefs are available for your film or TV production, please get in touch. We would be happy to help you maximise the reliefs available to you.
