The UK's Independent Film Tax Credit (IFTC) offers independent films with a budget of up to £15 million a tax break of £53%, which is a saving of around £40% after tax. It is intended to strengthen independent film production in the country.
The new Independent Film Tax Credit (IFTC) The UK's new tax relief scheme, which is attracting a lot of attention at AFM 2024, offers significant tax relief to independent film producers. This new scheme allows films with budgets under £15 million to receive an increased tax relief of £53% on qualifying expenditure, which equates to around £40% net relief.
The tax relief is intended to support independent producers in particular, who are suffering from rising production costs and uncertain market conditions. The UK hopes to attract international productions, particularly from the USA, where complicated tax benefits and high production costs are causing many producers to relocate their projects to the UK.
The IFTC will be available from April 2025 for productions that have started filming after 1 April 2024. To qualify, films must either employ British screenwriters or directors or be certified as official co-productions.
Despite the positive outlook, there are concerns about the practical implementation of the new regulations, as rising production costs and competition from US streaming services are increasing the pressure on the British film industry.
FILMTAKE reports in detail.
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