Creative Industries

Film and TV production tax reliefs and regulation

How to access UK film and television tax reliefs, including Audio-Visual Expenditure Credit (AVEC) rates, BFI cultural test certification, child performance licensing, health and safety requirements, and filming permits. Essential compliance and planning guidance for production companies.

UK-wide
Guide summary

You can claim tax credits for UK film and TV productions from April 2025. Check if your production qualifies, track UK spending, and apply for a British Film Institute (BFI) certificate. Claim the tax credit within 2 years after completing your project.

  • Claim 34% tax credit on UK film and high-end TV spend (39% for animation and children's TV)
  • Apply for BFI cultural test certificate before filming starts
  • Keep 10% of total spend in the UK to qualify
  • Submit final BFI certificate after completion
  • Claim relief on Corporation Tax return within 2 years
  • High-end TV needs £1 million per hour of slot length
  • Use form CT600J for tax credit claims
  • Independent films under £15m get 5% extra credit
  • Drama, comedy and documentary qualify for TV relief
  • Check if co-productions meet treaty requirements
On this page
UK-wide

Related guides in Media Production Regulation

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 children's TV, and 53% for qualifying independent films under the IFTC.

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From 1 April 2025, Film Tax Relief has been replaced by the Audio-Visual Expenditure Credit (AVEC) - a simpler above-the-line payable tax credit system.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.

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.

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.

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.

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.

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.

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.

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.

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.

Planning your production for tax relief

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

  1. 1

    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.

  2. 2

    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.

  3. 3

    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.

  4. 4

    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.

  5. 5

    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.

  6. 6

    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