UK Film Tax Relief Calculator 2025/26

The Audio Visual Expenditure Credit (AVEC) replaced the old Film Tax Relief (FTR) and Television Tax Relief (HETV, animation, children's TV, documentary) from January 2024. AVEC operates as a corporation tax credit rather than an enhanced deduction — the credit rate is applied directly to qualifying UK expenditure and reduces the company's CT liability. Any credit exceeding the CT liability is paid as a cash refund from HMRC. The qualifying criteria (cultural test, UK spend minimum) remain broadly the same as under FTR.

34% of qualifying UK core expenditure for most production types — including UK feature films, high-end TV (budget over £1m per broadcast hour), children's TV and documentary. A higher rate of 39% applies to animation and children's TV from January 2024. From April 2025, a separate Visual Effects (VFX) Credit of 39% applies to qualifying UK VFX expenditure within an AVEC-qualifying production, making the UK one of the most competitive markets globally for post-production visual effects.

At least 10% of total core expenditure must be spent in the UK. Core expenditure is broadly the cost of principal photography (cast, crew, locations, facilities) and post-production. There is no minimum total budget for UK film AVEC — even low-budget films qualify if they pass the BFI cultural test and meet the 10% UK spend test. High-end TV must have a budget of at least £1,000,000 per broadcast hour to qualify.