PARLIAMENTARY WRITTEN QUESTION
Film: Tax Allowances (11 September 2024)

To ask the Chancellor of the Exchequer, if her Department will bring forward the implementation of the five per cent increase in tax relief for UK visual effects in film and high-end TV, with UK visual effects costs exempt from the 80 per cent cap on qualifying expenditure, announced in the Spring Budget 2024, from 1 April 2025 to 1 January 2025.

Asked by:
Tom Hayes (Labour)

Qualifying visual effects costs in film and TV are already eligible for the Audio-Visual Expenditure Credit, which provides a tax credit worth 34% of a film or TV company’s production costs.

The previous Government announced that from 1 April 2025, UK visual effects costs in film and high-end TV will receive a 5% increase in Audio-Visual Expenditure Credit (AVEC). The previous Government also announced that the AVEC’s 80% cap on costs that may receive tax relief will be removed for UK visual effects costs.

The policy has not been legislated. The Government will provide an update as soon as it is able to do so.

Answered by:
James Murray (Labour)
7 October 2024