Beginning last week (17 February), Local Authorities were able to begin awarding a 40% reduction in business rates bills to film studios. The tax relief is aimed at boosting the film industry in the UK and contributing towards more box office hits being made.
The creative industries sector employs 2.4 million people and provides £124.6 billion to the UK economy. The government hopes to boost both these figures by providing the relief. The Film Studio Business Rates Relief will be available to eligible studios in England until 2034. Where applicable, it can be backdated to 1 April 2024.
Eligible film studios should not need to apply for the relief, but should be awarded it automatically by their Local Authority.
This is one of several reliefs available or becoming available to the film and TV sector in the UK. Already available is the Audio-Visual Expenditure Credit (AVEC) that provides a tax credit of 34% on UK production costs on a film or high-end TV programme, increasing to 39% on the production costs for an animation or children’s TV programme.
From 1 April 2025, film and high-end TV companies will be able to claim a 39% credit on their UK visual effects costs. Also, the Independent Film Tax Credit will become available. This is for eligible films that have a budget of less than £15 million and will allow for claiming an enhanced 53% rate.
The film and TV industry is seen as significant contributor to the UK economy with the potential for further growth.
If you need help with understanding what tax reliefs are available for your film or TV production, please give us a call at any time. We would be happy to help you maximise the reliefs available to you.
See: https://www.gov.uk/government/news/lights-camera-action-40-business-rates-relief-for-film-studios-rolled-out
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