UK Film Tax Incentives

Even after Brexit, UK is still considered as the leading European Country in the Film Industry. The EU aid (funding) is unavailable now for the UK Film Production Companies (FPC), but it seems that there will be no changes in the tax relief structure and rules.

The Benefits

• UK Film Tax Relief (FTR) is available for all British qualifying films of any budget level; the film production company can claim a payable cash rebate of up to 25% of UK qualifying expenditure.
• The Tax Relief is capped at 80% of core expenditure  i.e. even if you spend 100% qualifying expenditure in the UK, tax relief is payable on up to 80%.
• There is no budget limit.

Requirements

• Have a minimum 10% of core expenditure spent in the UK
• Be intended for theatrical release
• Have one FPC registered with Companies House and set up before principal photography begins
• The FPC must be responsible for all the filmmaking activity from pre-production through to completion
• The film must be qualify as British

How your project can qualify as British

Your film can qualify as British by passing the cultural test, or as an official co-production.

The Cultural Test for film and high-end television is points-based, with sections relating to content, cultural contribution, location, and cast and crew. Projects need to achieve at least 18 from a possible 35 points. The sections includes: Cultural content, Cultural contribution, Cultural hubs and Cultural practitioners

The film can also be qualified as an official co-production. The UK has film co-production agreements with Australia, Canada, China, France, India, Israel, Jamaica, Morocco, New Zealand, Occupied Palestinian Territories, and South Africa.