The UK government has formally passed the much-talked-about Independent Film Tax Credit into law and relief will be available for qualifying films starting October 30.
The credit was confirmed this morning by the UK Culture Secretary Lisa Nandy as the BFI’s London Film Festival begins its 11-day run in the capital.
Under the new credit, first-time productions with a budget of up to £15 million will be eligible for a relief of 53% on their qualifying expenditure. Films with a budget of up to £23.5 million are also eligible for the IFTC. Productions qualifying for the relief must have started principal photography on or after 1 April 2024, and only expenditure incurred on or after 1 April 2024 can be claimed. Films will also be required to pass a BFI cultural test.
“The UK’s first-class independent filmmakers have a track record of creating cult classics and surprise hits that are enjoyed by millions,” Nandy said in a statement this morning confirming the credit. “Their films showcase British culture and creativity to the world while also supporting thousands of jobs and driving economic growth in all parts of the UK.”
She added: “These reliefs will pay dividends both culturally and economically, inspire the next generation of talent across the country, deliver more great British content, and sustain a world-leading industry here in the UK.”
The tax credit was part of an expansive package tabled by the last British government to invest in the British cultural industry. The package also included a £26M upgrade to the National Theatre’s stages and infrastructure, and giving an additional £10M to the National Film & Television School.
Introduced more than a decade ago, the UK’s film and high-end TV tax credit has been hugely successful, bringing numerous shows from major streamers and studios to the nation and making it easier to get local shows off the ground. The new indie film relief will help a sector struggling with rising costs amidst budgets for the likes of BBC Film and Film4 that have plateaued in recent years.
Ben Roberts, BFI Chief Executive, added: “This is great news for UK film and is already having a positive impact across our industry. More films can now be made in the UK that audiences at home and internationally will get to enjoy. Independent filmmaking is vital to our cultural expression and creativity, it builds careers for talent in front of and behind the camera, and also showcases UK creative excellence on a world stage. We’re grateful to Government, the DCMS, and the industry for working together to establish this transformative tax relief uplift where it is most needed.”