United Kingdom film tax incentives
United Kingdom offers a 25.5% refundable tax credit. The credit is refundable. Conditional uplifts (Independent Film Tax Credit (53% gross → 39.75% net); VFX uplift (39% gross → 29.25% net on UK VFX costs)) can raise the rate.
At a glance
- Program type
- Refundable tax credit
- Base rate
- 25.5%
- Minimum spend
- None listed
- Annual program cap
- No annual cap listed
- Per-project cap
- No per-project cap listed
- Refundable / transferable
- Refundable
- Application required
- Yes
- Audit required
- Not specified
Bonuses and uplifts
These add to the base rate when the production meets the stated condition. Stacking rules vary — confirm with the film office before relying on a combined figure.
- Independent Film Tax Credit (53% gross → 39.75% net)Conditional — not included in estimates
Theatrical features with core expenditure up to £23.5M that pass the BFI cultural test and have a UK writer or director (or are an official co-production). The enhanced rate applies to qualifying spend up to 80% of £15M (£12M): max credit £6.36M gross (~£4.77M net). How relief applies to budgets between £15M and £23.5M — verify with BFI/HMRC.
- VFX uplift (39% gross → 29.25% net on UK VFX costs)Conditional — not included in estimates
UK VFX costs are also exempt from the 80% core-expenditure cap.
Caps and thresholds
At least 10% of core expenditure must be UK expenditure. HETV also needs core expenditure of at least £1M per broadcast hour and a slot length of at least 20 minutes.
Statutory entitlement — no per-project or annual cap. Rates shown are net cash after the credit is taxed at the 25% Corporation Tax main rate.
Qualifying spend and local hire
Qualifying spend is expenditure on goods and services used or consumed in the UK, regardless of the worker's nationality, capped at 80% of total core expenditure. Animation and children's TV earn 39% gross (29.25% net).
Program status
Legacy Film Tax Relief / HETV Relief close on 1 April 2027; AVEC is the only route after that.
Estimate your credit
Green Room's free estimator applies United Kingdom's rules to your actual budget lines — qualifying spend by category, resident versus non-resident labor, and every uplift above — and returns a modelled credit value with the assumptions shown.