The UK is one of the world's leading film and television production destinations, combining creative talent, world-class facilities, and generous tax relief schemes. Since April 2025, the Audio-Visual Expenditure Credit (AVEC) provides direct payable tax credits of 34% for film and high-end TV, and 39% for animation and independent films.

This guide covers the tax reliefs available, the BFI cultural test certification you need to qualify, and the regulatory requirements for employing child performers, health and safety on set, filming permits, and crew employment status.

Film Tax Relief and Audio-Visual Expenditure Credit

From 1 April 2025, Film Tax Relief has been replaced by the Audio-Visual Expenditure Credit (AVEC) - a simpler above-the-line payable tax credit system. This provides direct credits on qualifying UK expenditure, making the benefit more transparent and accessible than the previous enhancement model.

The AVEC applies to qualifying British films intended for theatrical release. Your film must pass the BFI cultural test (or qualify as an official co-production) and meet minimum UK expenditure thresholds.

Film Tax Relief

Corporation Tax relief for British qualifying films - 25% enhancement (standard) or 80% enhancement (limited-budget ≤ £15m). Requires BFI cultural test pass (18/35 points) and minimum 10% UK spend.

Credit rate (from 1 April 2025): 34% Audio-Visual Expenditure Credit (AVEC) on qualifying UK expenditure
Credit type: Above-the-line payable tax credit (replaces old enhancement system)
Minimum UK spend: At least 10% of total core expenditure must be UK expenditure
Independent film bonus: 5% additional credit (39% total) for independent films with budget ≤£15m
Cultural test requirement: Must pass British Film Institute cultural test or qualify as official co-production
Cultural test pass mark: 18 out of 35 points
Claim deadline: Within 2 years of end of accounting period of completion

From 1 April 2025, Film Tax Relief has been replaced by the Audio-Visual Expenditure Credit (AVEC). This is a new 34% above-the-line payable tax credit on qualifying UK expenditure - a simpler system than the old enhancement model. Independent films (budget ≤£15m) receive 39% credit.

How AVEC works

AVEC is a payable credit calculated as 34% (or 39% for qualifying independent films) of qualifying UK expenditure. Unlike the old enhancement system, the credit is calculated directly on expenditure without complex Corporation Tax interactions. Companies claim the credit on their CT600 return.

Eligibility requirements

1. British qualifying film: Must pass BFI cultural test (18/35 points) or be certified as official co-production treaty film

2. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure

3. Intended for theatrical release: Film must be intended for cinema exhibition

4. Production company: Must be UK film production company responsible for pre-production, principal photography, and post-production

Apply for interim BFI certificate: Before filming starts, apply to BFI for interim cultural test certificate. This confirms provisional pass and protects tax position if cultural test rules change during production.
Track UK expenditure carefully: Maintain detailed records of all core expenditure, separating UK expenditure from non-UK. Must meet 10% minimum UK spend threshold.
Submit final BFI certificate application: After completion, apply for final BFI cultural test certificate with full details of cast, crew, locations, and post-production facilities used.
Claim relief on Corporation Tax return: Include Film Tax Relief claim on CT600 return within 2 years of end of accounting period when film completed. Use additional form CT600J.

Film Tax Relief guidance

Apply for BFI cultural test certificate

High-End Television Tax Relief

High-end television programmes (drama, comedy, documentary) with budgets of at least £1 million per hour of slot length also qualify for AVEC at 34%. This applies to programmes intended for broadcast or streaming, excluding news, advertising, competitions, and training content.

The cost threshold is calculated against slot length (the scheduled broadcast duration including advertising breaks), not the actual programme runtime. For example, a 48-minute drama in a 60-minute slot needs £1 million total core expenditure, while a 22-minute comedy in a 30-minute slot needs £500,000.

High-end Television Tax Relief

Corporation Tax relief for high-budget TV (drama, comedy, documentary) costing ≥ £1m per broadcast hour slot. 25% enhancement on UK expenditure. Requires BFI cultural test (18/35 points) and 10% minimum UK spend.

Credit rate (from 1 April 2025): 34% Audio-Visual Expenditure Credit (AVEC) on qualifying UK expenditure
Credit type: Above-the-line payable tax credit (replaces old enhancement system)
Minimum UK spend: At least 10% of total core expenditure must be UK expenditure
Minimum cost threshold: £1 million per hour of slot length (e.g., £500k for 30-min slot)
Slot length definition: Scheduled duration including advertising breaks (e.g., 60-min or 30-min slot)
Cultural test pass mark: 18 out of 35 points
Qualifying content: Drama, comedy, documentary (excludes news, advertising, competitions, training)
Claim deadline: Within 2 years of end of accounting period of completion

From 1 April 2025, High-end Television Tax Relief has been replaced by the Audio-Visual Expenditure Credit (AVEC) at 34% of qualifying UK expenditure. This is a simpler above-the-line payable credit replacing the old enhancement system.

Cost threshold calculation

Cost is measured against slot length (scheduled broadcast duration including ad breaks), not actual programme runtime. Example: A 48-minute drama in a 60-minute slot needs £1 million total core expenditure. A 22-minute comedy in a 30-minute slot needs £500,000.

Eligibility requirements

1. British qualifying programme: Pass BFI cultural test (18/35 points) or certified official co-production

2. Minimum budget: £1 million per hour of slot length

3. Minimum UK spend: At least 10% of total core expenditure must be UK expenditure

4. Programme type: Drama, comedy, or documentary intended for broadcast (excludes news, advertising, competitions)

5. UK production company: Must be responsible for pre-production, principal photography, post-production

Calculate slot length threshold: Determine scheduled slot length (including ad breaks) and multiply by £1 million to find minimum budget requirement. A 60-minute slot requires £1m, a 30-minute slot requires £500k.
Apply for interim BFI certificate: Before production starts, submit interim cultural test application to BFI with script, production details, and provisional cast/crew information.
Track UK vs non-UK expenditure: Maintain detailed records separating UK core expenditure from non-UK. Must meet 10% minimum UK spend and document all qualifying costs.
Submit final BFI certificate: After completion, apply for final BFI cultural test certificate with actual cast, crew, locations, and facilities used.
Claim on CT600 return: Include High-end TV Tax Relief claim on Corporation Tax return using form CT600K within 2 years of accounting period end.

High-end Television Tax Relief guidance

Apply for BFI cultural test certificate

BFI Cultural Test Certification

To claim AVEC for film or television, your production must obtain BFI (British Film Institute) cultural test certification. This ensures that UK tax reliefs support British content and production, not purely offshore productions filming in the UK.

The cultural test awards points across three categories: Content (British setting, characters, subject matter), Contribution (British makers and production), and Cultural hubs/practitioners (production in the UK). You need to score at least 18 out of 35 points to pass.

BFI Cultural Test Certification

BFI cultural test certifies British qualifying films, TV, animation, and video games for tax relief. Pass mark 18/35 points (or 16/31 limited-budget ≤ £15m). Free application. Interim certificate before production, final certificate after completion required for HMRC claims.

Film pass mark - standard: 18 out of 35 points
Film pass mark - limited budget: 16 out of 31 points
TV/Animation pass mark - standard: 18 out of 35 points
TV/Animation pass mark - limited budget: 16 out of 31 points
Video games pass mark: 18 out of 35 points
Points categories: Content, Contribution (makers/production), Cultural hubs/practitioners
Interim certificate: Provisional pass issued before production starts
Final certificate: Confirmed pass after completion - required for HMRC tax relief claim
Application fee: Free (no charge for cultural test applications)
Application timeline: Usually 4-6 weeks for decision

BFI cultural test certificates are required for all UK creative industry tax reliefs (Film, High-end TV, Animation, Video Games). The test ensures government tax reliefs support British content and production, not purely offshore activity filmed in UK.

Points structure

Content section: British setting, characters, subject matter

Contribution section: British lead creatives (writer, director), British cast, British production crew, British production facilities

Cultural practitioners/hubs: Production in culturally significant UK areas, use of British cultural heritage

Interim vs Final certificates

Interim certificate: Apply before production starts. Provides provisional pass based on planned production. Protects tax position if cultural test rules change during production. Recommended for all productions.

Final certificate: Apply after completion with actual production details. Required by HMRC for tax relief claim. Must submit to HMRC with CT600 claim.

Limited-budget threshold advantage

Films, TV programmes, and animations with total core expenditure ≤ £15 million use easier limited-budget test (16 out of 31 points vs 18 out of 35). Fewer points required because some high-cost elements (like expensive non-British cast) removed from scoring, making pass more achievable.

Calculate potential points before production: Review BFI cultural test guidance and score your planned production. Identify which points categories you can achieve (British setting, British lead creatives, British crew, UK facilities). Ensure minimum 18/35 points (or 16/31 limited-budget).
Apply for interim certificate: Submit interim cultural test application before production starts. Provide script, production plan, intended locations, planned cast/crew nationalities. Receives provisional pass protecting tax position.
Adjust production to maintain points: During production, monitor actual points against interim certificate. If cast, crew, or locations change, ensure still meeting minimum pass mark. Changes may affect final certificate.
Apply for final certificate after completion: After production completes, submit final cultural test application with actual production details - confirmed cast, crew nationalities, actual locations used, production facilities used.
Provide final certificate to HMRC: Include final BFI cultural test certificate with Corporation Tax return when claiming creative industry tax relief. HMRC requires final certificate to process claim.

Apply for BFI cultural test certificate

Cultural test points guidance

Interim and final certification

Apply for an interim certificate before production starts. This provides a provisional pass based on your planned production and protects your tax position if cultural test rules change during production. It's strongly recommended for all productions.

After completion, you must apply for a final certificate with actual production details (confirmed cast, crew nationalities, locations used, facilities). HMRC requires this final certificate when you claim AVEC on your Corporation Tax return.

BFI certification fees 2025

British Film Institute cultural test certification fees for film and television tax relief applications.

Film interim certificate (budget under £20m): £750
Film interim certificate (budget £20m+): £2,000
Film final certificate (budget under £20m): £1,000
Film final certificate (budget £20m+): £3,000
High-end TV certificate (per series): £650 - £2,500

BFI certification is required to claim Audio-Visual Expenditure Credit (AVEC) for film and television productions. Certification fees vary by production type, budget size, and whether applying for interim (during production) or final (after completion) certification.

Apply for BFI certification

Official co-production treaties

If your film qualifies as an official co-production under a UK treaty, it automatically receives British qualifying status without needing to pass the cultural test. This opens up international financing while maintaining access to UK tax reliefs.

Co-productions access both countries' film incentives and support schemes, with proportional benefits based on each country's contribution. You must apply to the BFI for co-production certification before production begins.

UK film co-production treaty countries

List of countries with official co-production treaties with the UK for automatic British film qualification.

Official co-production treaties allow films made under the treaty to automatically qualify as British films without passing the BFI cultural test. Co-productions access both countries' film incentives and support schemes.

Treaty countries

Australia
Brazil
Canada
China
France
India
Israel
Jamaica
Morocco
New Zealand
Occupied Palestinian Territories
South Africa
European Convention countries (multiple European nations)

Co-production benefits

Films certified as official co-productions receive automatic British qualifying status, access to both countries' tax incentives and funding, and proportional benefits based on each country's contribution to the production.

Total bilateral treaties: 12 individual country treaties plus European Convention
Cultural test requirement: Automatic pass - no BFI cultural test needed for certified co-productions
Minimum UK contribution: Varies by treaty - typically 20-30% of production costs
Application process: Apply to BFI for co-production certification before production

UK co-production treaties

Child performance licensing

If your production involves child performers (anyone under 16 or still in compulsory education), you must obtain performance licences from the relevant local authority education welfare service. This is a legal requirement and productions cannot proceed without valid licences.

Apply at least 21 days before the child's first performance date. You'll need consent from the child's school and parent/guardian, and must provide details of filming dates, locations, and working hours.

Child performance licensing requirements

Requirements for obtaining child performance licences for film, TV and theatrical productions in the UK.

Any child performing in a film, TV, or theatrical production must have a performance licence from their local authority education welfare service. This applies to all children under 16 years old (or still in compulsory education).

Application requirements

Apply to local authority education welfare service at least 21 days before performance
Obtain child's school consent
Obtain parent/guardian written consent
Provide medical certificate (if required by authority)
Submit details of performance dates, locations and working hours

Exemptions

Amateur performances may be exempt under certain conditions. Children aged 14+ in light work may have limited exemptions, but professional film/TV productions almost always require full licensing.

Application timeline: At least 21 days before performance date
Licensing authority: Local authority education welfare service
Age coverage: All children under 16 or still in compulsory education
Chaperone requirement: Licensed chaperone required at all times
Chaperone ratio: 1 licensed chaperone per 12 children maximum

Child employment and performance licences

Working hours limits for child performers

Working hours for children are strictly regulated based on age. These limits apply to time spent on set (actively performing or waiting to perform) and total time on premises (including breaks, meals, tutoring). Exceeding these limits is illegal and can result in prosecution.

During term time, children must receive a minimum of 3 hours education or tutoring on days when performing. You must employ qualified tutors and provide suitable learning spaces on set.

Child performance working hours limits

Maximum working hours for children in film, TV and theatrical productions by age group.

Children under 5 years: Maximum 20 minutes on set at one time
Children aged 5-8 years: Maximum 2 hours on set, 4 hours on premises per day
Children aged 9-15 years: Maximum 3 hours on set, 5 hours on premises per day
Children aged 16+ years: Subject to young worker regulations (not child performance rules)
Rest periods: Minimum breaks required between sessions
Education provision: 3 hours minimum tutoring required on shooting days during term time

Working hours for child performers are strictly regulated based on age. These limits apply to time spent on set (actively performing or waiting to perform) and total time on premises (including breaks, meals, tutoring).

Important: During term time, children must receive minimum 3 hours education/tutoring on days when performing. Productions must employ qualified tutors and provide suitable learning spaces.

Child performance regulations

Health and safety on set

Film and television productions have significant health and safety obligations under the Health and Safety at Work etc. Act 1974 and related regulations. The production company is responsible for ensuring the safety of all cast, crew, and anyone affected by the production.

You must conduct written risk assessments for all production activities, particularly high-risk work including:

Stunt work and special effects
Working at height (rigging, scaffolding, elevated platforms)
Pyrotechnics and explosives
Animal handling
Vehicle work and driving sequences
Crowd scenes and public interaction
Night filming
Location hazards (water, weather, terrain)

The HSE (Health and Safety Executive) provides specific guidance for the entertainment industry, including detailed requirements for rigging and flying, special effects, stunts, animals on set, and electrical safety. Serious safety failures can result in prosecution and imprisonment.

Filming permits and location permissions

Filming on public land (streets, parks, council-owned property) requires permission from the landowner, usually the local authority. Each UK nation and region has film offices that coordinate location filming applications and provide production support.

Apply at least 2-4 weeks before your filming date - longer if the location is complex or requires road closures. You'll need public liability insurance (typically £5-10 million minimum), risk assessments, and detailed plans for traffic management, noise control, and equipment placement.

Film location filming permit requirements

Requirements and process for obtaining filming permits on public land and locations in the UK.

Filming on public land (streets, parks, council-owned property) requires permission from the landowner, usually the local authority. Each region has film offices that coordinate location filming applications.

Regional film offices

Film London: Covers Greater London filming permits and coordination
Creative England: Covers England outside London
Screen Scotland: Covers filming in Scotland
Ffilm Cymru Wales: Covers filming in Wales
Northern Ireland Screen: Covers filming in Northern Ireland

Application requirements

Apply to the relevant local film office or council at least 2-4 weeks before filming. Applications typically require:

Production details and filming schedule
Public liability insurance (£5-10 million minimum)
Risk assessments and safety plans
Traffic management plans (if affecting roads)
Noise management plans
Details of equipment, crew, vehicles

Minimum lead time: 2-4 weeks before filming date
Insurance requirement: Public liability insurance £5-10 million
Permit fees: Vary by location, duration and impact
Special considerations: Listed building consent, environmental impact, noise restrictions may apply

Film London filming permits

Regional film offices

Regional film offices are your first point of contact for location filming. They coordinate with local authorities, provide location libraries, offer crew databases, and can facilitate introductions to local suppliers and facilities. They're free public services designed to attract and support production in their regions.

Film London covers Greater London filming permits and coordination. Creative England supports production across England outside London. Screen Scotland, Ffilm Cymru Wales, and Northern Ireland Screen cover their respective nations and also offer production funding schemes.

IR35 and crew employment status

Many film and TV crew work through Personal Service Companies (PSCs), which triggers IR35 off-payroll working rules. If you're a medium or large production company, you must determine the employment status for each crew member engaged through a PSC.

The determination affects whether you operate PAYE and pay employer's National Insurance, or whether the crew member handles their own tax affairs. Get this wrong and HMRC can pursue you for unpaid tax and National Insurance, plus penalties.

Industry bodies PACT (Producers Alliance for Cinema and Television) and BECTU (Broadcasting, Entertainment, Communications and Theatre Union) have developed employment status guidance and standard engagement terms. Using these industry-standard templates can reduce your compliance risk.

Production insurance requirements

Film and television productions need comprehensive insurance to protect against production risks, legal liabilities, and to satisfy the requirements of locations, equipment suppliers, and financiers. Without proper insurance, you cannot film on most locations or hire professional equipment.

Film production insurance requirements

Mandatory and recommended insurance coverage for film and television productions in the UK.

Employers' liability insurance (mandatory): Minimum £5 million coverage
Public liability insurance (essential): £5-10 million coverage
Equipment insurance (recommended): Full replacement value of hired equipment
Errors and omissions insurance: Coverage varies by production budget
Negative/media insurance: Full production value
Completion guarantee: 2-6% of production budget

Film and television productions require multiple insurance policies to protect against production risks, legal liabilities, and to satisfy location owners, equipment suppliers, and financiers.

Mandatory coverage

Employers' Liability: Legal requirement if employing anyone (crew, actors, support staff). Minimum £5 million coverage.

Essential coverage

Public Liability: Required by most filming locations (public land, private property, studios) and equipment hire companies. Typically £5-10 million coverage protects against third-party injury or property damage claims.

Recommended coverage

Equipment insurance: Hired equipment (cameras, lights, etc.) must be insured to full replacement value
Errors and omissions: Protects against copyright infringement, defamation, and rights clearance issues
Negative/media insurance: Covers loss or damage to recorded footage
Completion guarantee: Required by financiers for larger productions - guarantees film will be completed on budget

Employers' liability insurance

Planning your production for tax relief

To maximise your AVEC claim, plan carefully from the start:

Score your cultural test points early

Before committing to locations, cast, and crew, calculate your expected BFI cultural test points. Identify which categories you can score in (British setting, British creatives, British crew, UK facilities) and ensure you'll meet the 18-point pass mark. Adjust your production plan if needed to maintain qualification.
Apply for interim BFI certificate before filming

Submit your interim cultural test application as soon as your production plan is firm. This gives you provisional certification and protects your tax position if test rules change during production. Don't wait until completion - HMRC expects interim certification for well-planned productions.
Track UK expenditure meticulously

Maintain detailed records separating UK core expenditure from non-UK costs. You need at least 10% UK expenditure to qualify for AVEC. Use production accounting software that categorises expenditure by territory and tracks against your AVEC eligibility in real-time.
Obtain all required licences and permits before production

Child performance licences take at least 21 days. Filming permits need 2-4 weeks minimum. Health and safety risk assessments must be completed before work begins. Build adequate lead time into your pre-production schedule to avoid costly delays.
Secure production insurance before crew or equipment contracts

Employers' liability insurance is legally required before employing anyone. Public liability insurance is required by locations and equipment hire companies. Arrange insurance during pre-production, before signing crew deals or equipment hire contracts.
Submit final BFI certificate and claim AVEC on CT600

After completion, apply for your final BFI cultural test certificate with actual production details. Include this final certificate with your Corporation Tax return (using form CT600J for film or CT600K for high-end TV) within 2 years of the accounting period when the production completed.

What if you don't qualify for UK tax relief?

Not every production will pass the BFI cultural test or meet the minimum UK expenditure thresholds. If you don't qualify for AVEC, consider:

Official co-productions: Partner with a producer in a treaty country to access both countries' incentives without needing to pass the cultural test
Regional production funding: Screen Scotland, Ffilm Cymru Wales, and Northern Ireland Screen offer production funding for projects with strong regional connections, even if they don't qualify for AVEC
Adjusting your production: Small changes to locations, crew nationalities, or post-production facilities can add crucial cultural test points. Review the BFI scoring guidance with your production team before finalising plans
BFI Film Fund or regional funds: Apply for development or production funding from BFI or regional screen agencies. This is recoupable funding (not pure grant) but doesn't require passing the same cultural test thresholds

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Film and TV production tax reliefs and regulation

Film Tax Relief and Audio-Visual Expenditure Credit

High-End Television Tax Relief

BFI Cultural Test Certification

Interim and final certification

Official co-production treaties

Child performance licensing

Working hours limits for child performers

Health and safety on set

Filming permits and location permissions

Regional film offices

IR35 and crew employment status

Production insurance requirements

Planning your production for tax relief

Score your cultural test points early

Apply for interim BFI certificate before filming

Track UK expenditure meticulously

Obtain all required licences and permits before production

Secure production insurance before crew or equipment contracts

Submit final BFI certificate and claim AVEC on CT600

What if you don't qualify for UK tax relief?

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◉ Content Graph

Film Tax Relief and Audio-Visual Expenditure Credit

High-End Television Tax Relief

BFI Cultural Test Certification

Interim and final certification

Official co-production treaties

Child performance licensing

Working hours limits for child performers

Health and safety on set

Filming permits and location permissions

Regional film offices

IR35 and crew employment status

Production insurance requirements

Planning your production for tax relief

Score your cultural test points early

Apply for interim BFI certificate before filming

Track UK expenditure meticulously

Obtain all required licences and permits before production

Secure production insurance before crew or equipment contracts

Submit final BFI certificate and claim AVEC on CT600

What if you don't qualify for UK tax relief?

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