Film Tax Relief

Film tax relief was introduced in 2007 and is an incentive available to film production companies (FPC) on the condition that they fall under the UK corporation tax net.

Tax Relief For The Film Industry

The aim of the scheme is to encourage and support the Film Industry, boosting employment and innovation, and to continue the UK’s proud heritage in producing world-acclaimed creative material.

FTR is available for all British qualifying films regardless of the allocated production budget. The FPC can claim a cash reimbursement of up to 25% however, the tax relief is capped at 80% of expenditure meaning that, even if 100% of your expenditure qualifies, the tax relief is only payable on up to 80% of it.

The Company

How do I Qualify For Tax Relief?

There are certain criteria that need to be met to ensure that a company is eligible to claim Creative Industry Tax Relief, which are:

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Qualification 1

01

Have a permanent UK headquarters that qualifies for UK Corporation Tax.

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Qualification 2

02

Full involvement with contract negotiations.

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Qualification 3

03

Pays for the licensing, goods and servicing relating to the film.

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Qualification 4

04

Being involved in every stage of production from pre-planning all the way through to post-production.

What Doesn't Qualify?

  • If it is not a British film
  • If less than 10% of total production costs relate to activities in the UK
  • If photography took place before 1st January 2007
Green Jellyfish Creative Industries Tax Relief

The Project

How do I Qualify For Tax Relief?

The project itself will need to be certified as British, by passing a cultural test or as an official co-production. There are 10 bi-lateral co-production treaties and some of these treaties will allow television co-production.

In terms of qualifying projects, there is also criteria that makes them eligible, which are:

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Qualification 1

01

If it is scheduled for a theatrical release.

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Qualification 2

02

If the first day of shooting was held on or after 1st January 2007.

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Qualification 3

03

If it passes the BFI cultural test (to do so, projects need a minimum of 18 points).

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Qualification 4

04

If there is a minimum of 10% allocated from the total production costs to activities taking place in the UK.

What Costs Qualify for Film Tax Relief?

To qualify for Creative Industry Tax Relief, you must have spent money on qualifying costs. It is important to note that you will not be able to claim for costs such as development, distribution, and other non-production related activity. 

Pre-production

Principal photography

Post-production

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Making A Claim

What Documentation Will I Need?

To make a claim, you will need to do this through the Company Tax system which means that the claim must be made in a Company Tax Return or an amendment to a Company Tax Return. This will require the following documents:

You may be eligible to receive up to 25% of your core expenditure for your Film as a cashback from the relief programme. 

An example would be that if your programme cost £100,000 to make, HMRC could reward you with a tax relief cheque for £25,000.

To find out more about Green jellyfish’s Creative Industry Tax Relief service for Film, contact us today.