UK Creative Industries; Budget boost as incentives increase...

Government support for the UK Creative Industries was hiked in the 2024 Spring Budget, with the news that the Audio Visual Expenditure Credit on Independent Films with Core Production Expenditure of up to £15 million will benefit from a new credit rate of 53%, which has the potential to deliver up to 31.8% in cash benefit (after tax is taken into account).

As a result, Core Production Expenditure on an Independent Film of say £1 million could potentially receive Government cash of £318,000 towards the budget …. a great boost for the sector. It will be available for films that start production after 1 April 2024, with certain other conditions attached.

There is also a Business Rates Relief package for eligible film studios with more details to be announced.

Following a recent consultation, the Chancellor also announced the new Visual Effects Additional Relief package, as part of the Audio Visual Expenditure Credit. Consultations and details will be forthcoming, but essentially, whatever it is concluded qualifies as Visual Effects Expenditure will attract a rate of 39% Expenditure Credit unaffected by the 80% expenditure cap, which should, therefore, translate into cash of 29.25% after tax.

Theatres, Orchestras and those qualifying for Museums and Galleries Exhibitions Tax Relief will also be delighted with the new permanent rates of Tax Credits of 40%, and 45% for touring productions.

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