In a move set to invigorate the UK’s television production landscape, the government has unveiled a series of enhanced tax incentives tailored for TV production companies. These measures, effective from 1 April 2025, are designed to bolster the nation’s creative industries, ensuring the UK remains a premier destination for high-quality television content.
This bold initiative not only strengthens the local economy but also ensures that the UK continues to attract the brightest minds and most ambitious projects in the global television industry.
Central to these reforms is the introduction of the Audio-Visual Expenditure Credit (AVEC), which replaces the previous Television Tax Relief (TTR). Under AVEC, high-end television (HETV) productions can claim a taxable credit directly from their qualifying UK expenditure.
Productions are eligible for a 34% credit rate, translating to a net benefit of 25.5% after tax. This adjustment simplifies the relief process, allowing producers to allocate more resources towards creativity and innovation.
Recognising the pivotal role of visual effects in modern storytelling, the government has introduced an enhanced relief for VFX expenditures.
From 1 April 2025, productions can claim an elevated AVEC rate of 39% on UK VFX costs, up from the standard 34%. Additionally, the 80% cap on qualifying expenditure has been lifted, allowing full relief on UK VFX spending.
The reforms extend increased support to animation and children’s television productions. These genres now benefit from a higher credit rate of 39%, equating to a net benefit of 29.25% after tax.
This initiative ensures that British children have access to diverse and inspiring content, encouraging the creation of more original programmes.
The government has introduced the Independent Film Tax Credit (IFTC) to support smaller-scale film productions. Applicable to films with budgets up to £15 million, the IFTC offers a net rate of 39.75% on qualifying UK expenditure.
This initiative encourages independent filmmaking, fostering diversity and innovation within the UK’s film industry.
These comprehensive reforms strengthen the UK’s position as a global hub for television and film production. By offering more generous and accessible tax incentives, the government supports domestic producers while attracting international projects.
The combination of AVEC, enhanced VFX relief, targeted support for animation and children’s television, and the new IFTC demonstrates a holistic approach to fostering talent and innovation.