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UK Film Tax Credit

What is it ?

A tax rebate system designed to support British qualifying films intended for theatrical release. A reliable and stable rebate with no annual spending cap, paid directly to the production company. The system is managed centrally by the UK’s HM Revenue and Customs (HMRC), the UK’s tax authority.

What’s it Worth ?

Cash rebate of 25% of UK qualifying film spend for films that cost up to £20 million ( $33 million) and 20% for film send above £20 million payable in cash to the film production company
Maximum of 80% of total qualifying costs with a minimum core UK spend of 25%
Interim payments are possible

Eligibility requirements

British qualifying, subject to cultural test ( see below) OR as a co-production with a treaty country
Film Production Company must be UK incorporated for tax purposes to receive the rebate

Cultural Test

A film is deemed British if it meets or exceeds certain criteria in the cultural test and needs to score 16 out 30 points, subject to a Golden Points rule from 4 sections.

Co-Productions

Benefits to co-production

Pooling of creative , technical and financial resources and risk
Ability to access public support from UK Film Tax rebate, UK Film Council and Regional Funds

Treaty Countries

Bi-lateral agreements with Australia, Canada, France, India, Jamaica, New Zealand and South Africa
Multi-lateral agreement in Europe, European Convention on Cinematographic Co-Production (39 countries)

The Cultural Test

Passing the Test

To pass the test, 16 points or more out of 30 are required subject to the Golden Rule. If you fall into the Golden Rule, you must pass it to pass the Cultural Test.

Golden Rule

If the film scores all 15 points in A4 (4 pts), C (3 pts) and D (8 pts), you must score additionally: 2 or more points in A1 and/or A2 (at least 50% of the film is set in the UK, at least 50% of hte lead cast is British or a combination (see guidelines) OR 4 points in A3.