The Government has today laid the statutory instrument to bring in the Independent Film Tax Credit (IFTC). These regulations set out the eligibility criteria for film production companies, who will be able to apply for an eligibility certificate from the BFI from 30th October this year. Companies will then be able to apply to HMRC to claim the IFTC from 1st April 2025.
The IFTC was introduced by the previous Government at the Spring Budget earlier this year following campaigning from Pact. The IFTC will uplift the Audiovisual Expenditure Credit from 34% to 53% for low-budget British films, to support growth within the indie film production sector and stimulate much needed investment.
Productions can claim the enhanced relief on films whose principal photography began on or after 1st April 2024.
To avoid productions with budgets slightly over £15 million receiving a much lower amount of relief, films with core budgets of up to £23.5 million are eligible. The IFTC has a cap of £6.36 million on the total cash credit receivable, which is based on qualifying core expenditure (i.e. ‘core budget') of £15 million. This creates a taper in the proportionate value of the credit for films with core budgets above £15 million.
For more information on the IFTC, please see HMT/HMRC’s policy note.