Although the following announcements were made in the Budget on 30 October 2024, they had in fact already been announced. Here is a recap of the changes coming in from next year.
Audio-Visual Expenditure Credit and additional tax relief for visual effects.
From 1 April 2025, film and high-end TV productions will be able to claim an enhanced 39% rate of Audio-Visual Expenditure Credit on their UK visual effects costs. UK visual effects costs will be exempt from the Audio-Visual Expenditure Credit’s 80% cap on qualifying expenditure. Costs incurred from 1 January 2025 will be eligible.
Independent Film Tax Credit.
UK films with budgets under £15 million and a UK lead writer or director will be able to claim an enhanced 53% rate of Audio-Visual Expenditure Credit, known as the Independent Film Tax Credit. Expenditure incurred from after 1 April 2024 on films that began principal photography on or after 1 April 2024 is eligible. This applies from 1 April 2025.
Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief
From 1 April 2025, the rates of Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief will be set at 40% for non-touring productions and 45% for touring productions and all orchestra productions. These rates apply UK-wide.
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