A UK Independent Film Tax Credit (IFTC) has been created it was announced today. The increased Independent Film Tax Credit will apply to United Kingdom films with a film budget of £15m ($19m) or less.
The UK Independent Film Tax Credit rate will increase to 53%, which is capped at 80% of core expenditure costs. This will result in a net film tax credit rate 42.4% for UK indie films. TV shows will not be eligible for this tax credit.
UK films with a movie budget exceeding £15m will remain eligible for the existing 25% tax credit for film and high-end television (HETV).
Full details have yet to be released as of this writing. Updates will be included as they are likewise announced.
Additional changes will see Studios receive a 40% tax credit, designed to continue the build-out of the UK Studio and Stage infrastructure boom. Further changes included a 5% increase to the VFX tax credit, and removal of the 80% cap for visual effects costs in the audiovisual expenditure credits.
Read the Hollywood Reporter article on the announcement.
Read the HMT-HMRC Policy Note on the revised incentives.
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