The United Kingdom government has approved a tax credit aimed at helping independent films get made in Britain. The new Independent Film Tax Credit (IFTC) was formally put into law on October 30, 2024. This tax break will provide money to low-budget films starting that date.
Culture Secretary Lisa Nandy announced the credit during the London Film Festival this month. The IFTC, officially called the enhanced audiovisual expenditure credit for low-budget films, is expected to significantly fund independent movie producers. Films with budgets under 15 million pounds will qualify for a tax credit of about 40% of eligible production costs. The credit also applies to movies costing up to 23.5 million pounds, though with some limits.
To receive the tax break, films have to begin principal photography on or after April 1, 2024. Only costs incurred from that date can be claimed. Movies also need to pass a cultural test from the British Film Institute and have a British writer or director, or be a UK co-production.
Nandy said the credit will help showcase British culture worldwide and support many jobs and local economies across the UK. The tax incentive is part of a larger plan to invest in the country’s cultural industries. It will help lower production costs at a critical time for independent films facing rising expenses.
The British Film Institute will hire five new employees to process applications starting October 30. As the head of the UK film certification office, the BFI will oversee applying for the tax credit. A similar tax break was recently adopted in Ireland to encourage filmmaking through lowered taxes. The UK joins other European countries offering industry incentives to attract movies.
Independent film supporters believe the new tax credit can help more British stories get told and strengthen the thriving domestic film sector into the future. It aims to both finance additional movies and sustain the next generation of UK filmmakers.
