Guide summary

Apply to the British Film Institute for an interim certificate before or during production to claim early
Send the final certificate once the production is complete if you claimed with an interim certificate
Keep UK and non-UK core costs separate to show the 10% UK spend and work out qualifying expenditure
Claim on your Company Tax Return and send the additional information form with your certificate
Make, amend or withdraw a claim up to 2 years after the end of the period of account
TV drama, comedy and documentary need core costs of at least £1 million per hour of slot length
Animation needs at least 51% of core costs spent on animation
There is no fee for British Film Institute certification applications

Audio-Visual Expenditure Credit (AVEC) is a Corporation Tax relief for companies that make films and TV programmes. You can claim it on expenditure incurred from 1 January 2024 on films, high-end TV programmes, children's TV programmes and animation.

Check your company can claim

The claiming company must be the production company. It must be responsible for pre-production, principal photography, post-production and delivery of the finished film or programme, be actively engaged in planning and decision-making, and directly negotiate, contract and pay for rights, goods and services.

Films

Film Tax Relief and the Audio-Visual Expenditure Credit

Corporation Tax expenditure credit for British films: 34% Audio-Visual Expenditure Credit (AVEC), or 53% for independent films on up to £15m of core costs. Requires BFI certification and at least 10% UK core costs. Film Tax Relief is closed to films starting principal photography after 31 March 2025.

Standard AVEC rate: 34% of qualifying expenditure
Independent film rate: 53% on up to £15m of core costs
Independent film limit: Core costs under £23.5m
Qualifying expenditure: Lower of 80% of core costs and UK core costs
Credit type: Taxable expenditure credit; any balance is paid out
Minimum UK spend: 10% of core costs
Cultural test: BFI cultural test or official co-production
Cultural test pass mark: 18 out of 35 points
Claim deadline: 2 years after the end of the period of account
Claim form: CT600P, for returns submitted from 6 April 2026

The Audio-Visual Expenditure Credit (AVEC) has replaced Film Tax Relief. You cannot claim Film Tax Relief for a film that started principal photography after 31 March 2025, and Film Tax Relief closes for all productions from 1 April 2027. You can claim AVEC on expenditure incurred from 1 January 2024.

How AVEC works

Your qualifying expenditure is the lower of 80% of total core costs and the UK core costs. Core costs are what you spend on pre-production, principal photography and post-production. The credit is 34% of qualifying expenditure. It is taxed at the main rate of Corporation Tax, then used to pay off your Corporation Tax and any other tax liabilities, or surrendered to group companies. Any credit left after that is paid to you.

Independent films

An independent film certified as low-budget by the British Film Institute (BFI) gets 53% on up to £15 million of core costs. To be certified, the film must begin principal photography on or after 1 April 2024, have a UK writer or director or be an official co-production, and have core costs under £23.5 million. You can claim the higher rate from 1 April 2025 on costs incurred from 1 April 2024.

Visual effects

From 1 April 2025, films at the 34% rate can claim 39% on visual effects costs incurred from 1 January 2025. Those costs are not subject to the 80% cap.

Eligibility requirements

The BFI must certify the film as British, through the cultural test or as an official co-production.
At least 10% of core costs must relate to activities in the UK.
The film must be intended for theatrical release.
Your company must be responsible for pre-production, principal photography, post-production and delivery of the completed film, be actively involved in decision-making, and directly negotiate, contract and pay for rights, goods and services.

Interim BFI certificate: Apply before or during production
UK expenditure records: Keep UK and non-UK core costs separate
Final BFI certificate: Apply once the film is complete
How to claim: Company Tax Return plus additional information form

Claiming Audio-Visual Expenditure Credits (opens in a new tab)

Film Tax Relief guidance (closed scheme) (opens in a new tab)

Apply for BFI cultural test certificate (opens in a new tab)

TV programmes

High-end Television Tax Relief and the Audio-Visual Expenditure Credit

Corporation Tax expenditure credit for high-end TV dramas, comedies and documentaries costing at least £1m per hour of slot length, with slots over 20 minutes: 34% Audio-Visual Expenditure Credit (AVEC). Children's and animated programmes get 39%. Requires BFI certification and at least 10% UK core costs.

AVEC rate: 34% of qualifying expenditure
Children's and animated TV: 39% of qualifying expenditure
Qualifying expenditure: Lower of 80% of core costs and UK core costs
Credit type: Taxable expenditure credit; any balance is paid out
Minimum UK spend: 10% of core costs
Minimum cost threshold: £1m per hour of slot length
Minimum slot length: More than 20 minutes per episode
Cultural test pass mark: 18 out of 35 points
Qualifying content: Drama, comedy or documentary
Claim deadline: 2 years after the end of the period of account
Claim form: CT600P, for returns submitted from 6 April 2026

The Audio-Visual Expenditure Credit (AVEC) has replaced High-end Television Tax Relief. You cannot claim High-end Television Tax Relief for a programme that started principal photography after 31 March 2025, and the relief closes for all productions from 1 April 2027. AVEC is 34% of qualifying expenditure for high-end dramas, comedies and documentaries. It is taxed at the main rate of Corporation Tax, set against your tax liabilities or surrendered to group companies, and any balance is paid to you.

Cost threshold calculation

Cost is measured against slot length (the scheduled broadcast slot including ad breaks), not the programme's running time. A 48-minute drama in a 60-minute slot needs average core costs of £1 million. A 22-minute comedy in a 30-minute slot needs £500,000. The slot must be more than 20 minutes for each episode, and programmes commissioned together are treated as one programme.

Children's and animated programmes

A children's programme (one whose primary audience is expected to be under 15) or an animated programme (at least 51% of core costs spent on animation) qualifies for AVEC at 39%. The £1 million per hour and 20-minute slot tests apply to dramas, comedies and documentaries.

Eligibility requirements

The BFI must certify the programme as British, through the cultural test or as an official co-production.
The programme must be a drama, comedy or documentary with average core costs of at least £1 million per hour of slot length and a slot of more than 20 minutes.
At least 10% of core costs must relate to activities in the UK.
The programme must be intended for broadcast to the general public, which includes streaming online. Advertising, news, current affairs, quiz and panel shows, competitions, live events and training programmes do not qualify.
Your company must be responsible for pre-production, principal photography, post-production and delivery of the completed programme.

Slot length test: £1m × slot length in hours, for example £500k for a 30-minute slot
Interim BFI certificate: Apply before or during production
UK expenditure records: Keep UK and non-UK core costs separate
Final BFI certificate: Apply once the programme is complete
How to claim: Company Tax Return plus additional information form

Claiming Audio-Visual Expenditure Credits (opens in a new tab)

High-end Television Tax Relief guidance (closed scheme) (opens in a new tab)

Apply for BFI cultural test certificate (opens in a new tab)

Animation

Animation Tax Relief and the Audio-Visual Expenditure Credit

Corporation Tax expenditure credit for animated films and TV programmes where at least 51% of core costs are on animation: 39% Audio-Visual Expenditure Credit (AVEC). Requires BFI certification (18/35 for films, 16/31 for TV programmes) and at least 10% UK core costs.

AVEC animation rate: 39% of qualifying expenditure
Qualifying expenditure: Lower of 80% of core costs and UK core costs
Credit type: Taxable expenditure credit; any balance is paid out
Minimum UK spend: 10% of core costs
Animation requirement: At least 51% of core costs on animation
Cultural test pass mark: 18/35 (films); 16/31 (TV programmes)
Qualifying formats: Films and TV programmes
Claim deadline: 2 years after the end of the period of account
Claim form: CT600P, for returns submitted from 6 April 2026

The Audio-Visual Expenditure Credit (AVEC) has replaced Animation Tax Relief. You cannot claim Animation Tax Relief for a production that started principal photography after 31 March 2025, and the relief closes for all productions from 1 April 2027. Animated films and animated TV programmes get AVEC at 39% of qualifying expenditure, compared with 34% for most other films and TV.

Animation requirement

A film or TV programme counts as animation if at least 51% of its core costs are spent on animation. Core costs are what you spend on pre-production, principal photography and post-production.

Eligibility requirements

At least 51% of core costs must be spent on animation.
The BFI must certify the production as British, through the cultural test or as an official co-production. Animated films need 18 out of 35 points on the film test. Animated TV programmes need 16 out of 31 points on the animation television test.
At least 10% of core costs must relate to activities in the UK.
A film must be intended for theatrical release. A TV programme must be intended for broadcast, which includes streaming online. Advertising and training programmes do not qualify.
Your company must be responsible for pre-production, principal photography, post-production and delivery of the completed production.

Animation share: Animation spend ÷ total core costs, at least 51%
Qualifying expenditure: Lower of 80% of core costs and UK core costs
Interim BFI certificate: Apply before or during production
UK expenditure records: Keep UK and non-UK core costs separate
How to claim: Company Tax Return plus additional information form

Claiming Audio-Visual Expenditure Credits (opens in a new tab)

Animation Tax Relief guidance (closed scheme) (opens in a new tab)

Apply for BFI cultural test certificate (opens in a new tab)

Pass the cultural test

For film, the cultural content section is worth up to 18 points, cultural contribution up to 4, cultural hubs up to 5 and cultural practitioners up to 8.

BFI Cultural Test Certification

BFI cultural test certifies British films, TV programmes and video games for the AVEC and VGEC expenditure credits. Pass mark 18/35 for film, high-end TV and children's TV; 16/31 for animated TV and video games. No application fee. Interim certificate before or during production, final certificate on completion.

Film pass mark: 18 out of 35 points
High-end TV pass mark: 18 out of 35 points
Children's TV pass mark: 18 out of 35 points
Animated TV pass mark: 16 out of 31 points
Video games pass mark: 16 out of 31 points
Points sections: Cultural content, contribution, hubs, practitioners
Interim certificate: For work not yet completed
Final certificate: Once the production is complete
Application fee: None, for any certification application
Application timeline: 6 to 8 weeks

To claim the Audio-Visual Expenditure Credit (film, high-end TV, animation and children's TV) or the Video Games Expenditure Credit, your production must be certified as British. It must pass the cultural test or qualify as an official co-production. The British Film Institute (BFI) runs certification for the Department for Culture, Media and Sport. It does not charge any fee for certification applications, whether you qualify through the cultural test or as an official co-production.

Points structure

Each test has four sections: cultural content, cultural contribution, cultural hubs and cultural practitioners. The film, high-end TV and children's TV tests have 35 points and a pass mark of 18. The animation TV and video games tests have 31 points and a pass mark of 16.

Interim and final certificates

You can apply for an interim certificate at any point before or during production, so you can claim while the work is still in production. You must apply for a final certificate once the production is complete. If you send HMRC an interim certificate with a claim, you must send the final certificate when the work is complete, and the certificate must be in date when you submit it.

Independent films

For the 53% Enhanced AVEC rate for independent films, the BFI also checks the budget condition and creative connection. A film needs total core costs under £23.5 million, and the enhanced rate applies to the first £15 million. You need an auditor's report at both interim and final stage.

Score your production: Check it against the relevant test before production
Interim certificate: Apply before or during production
Track changes: Re-check points if cast, crew or locations change
Final certificate: Apply once the production is complete
HMRC claim: Send the certificate with the additional information form

Apply for BFI cultural test certificate (opens in a new tab)

Cultural test points guidance (opens in a new tab)

Official co-productions

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: At least 20% under most treaties (30% for Australia); 10% in exceptional cases under some
Application process: Apply to the BFI at least 4 weeks before principal photography or key animation starts

UK co-production treaties (opens in a new tab)

Make your claim

Score the cultural test early

Check your expected points before you commit to locations, cast and crew, and adjust your plans if you are short of the pass mark.
Apply for an interim certificate

Apply to the BFI before or during production so that you can claim while the production is still running.
Keep UK and non-UK costs apart

Record core costs by activity and territory so that you can show the 10% UK test and work out qualifying expenditure.
Claim on your Company Tax Return

Include the CT600P Creative Industries supplementary page if you file on or after 6 April 2026, and send the additional information form with your BFI certificate and statements of UK and non-UK core costs.
Send the final certificate

If you claimed with an interim certificate, send the final certificate once the production is complete.
Claim within 2 years

You can make, amend or withdraw a claim up to 2 years after the end of the period of account it relates to.

Legal basis

Primary legislation and key regulations

Corporation Tax Act 2009 Primary 2009 · UK-wide Films Act 1985 Primary 1985 · UK-wide

Browse UK legislation legislation.gov.uk

Official guidance

BFI: British certification and tax relief (opens in a new tab)

www.bfi.org.uk

BFI: Cultural test for film (opens in a new tab)

www.bfi.org.uk

Claiming Audio-Visual Expenditure Credits for Corporation Tax (opens in a new tab)

HMRC

Claim film and high-end TV tax relief

Check your company can claim

Films

TV programmes

Animation

Pass the cultural test

Official co-productions

Make your claim

Score the cultural test early

Apply for an interim certificate

Keep UK and non-UK costs apart

Claim on your Company Tax Return

Send the final certificate

Claim within 2 years

Legal basis

Official guidance

Related guides in Media Production Regulation

Get a child performance licence

Film and TV production permissions and insurance

Claim the audio-visual or video games expenditure credit

Understand how Corporation Tax works

Claim R&D tax relief for your company