Film Tax Relief
how much you could receive
What Is Film Tax Relief
Everything you need to know
How Much Can I Claim Through Film Tax Relief?
The Film Production Company (FPC) can claim a payable credit of up to 25% of the eligible expenditure (UK qualifying expenditure).
There is a cap for claimants only being able to claim 80% of the UK qualifying expenditure – this means that even if all of your expenditure is in the UK, you can only account for 80% of it under the Film Tax Relief.
The good news is, that there is no cap on the actual budget of the film! Therefore, you are only restricted by the 80% UK expenditure cap.
Qualifying As A British Co-Production:
The main part of qualifying for this incentive is qualifying as a British production. This is achieved through the cultural test. This test determines whether your production is British through a points-based system that is related back to the cultural content of your production, the cultural contribution as well as location and your crew.
The accreditation is obtained through the British Film Institute, and you’re only required to score 18 points out of the 35 available to qualify.
How Do I Qualify?
Aside from the cultural test, you must qualify as a Film Production Company, which means that:
- You must be liable for Corporation Tax
- The following arrangement must be completed by yourself: the pre-production stage, as well as principal photography, VFX and the post & delivery
- If the production company was set up on the behalf of a parent company (outside of the UK) you will still qualify
In addition to the cultural test and the FPC criteria, there are a few more requirements before you can start claiming your costs back! These are:
- You are only able to claim back on costs associated with the production of a film that is intended for theatrical release
- You must evidence at least 10% of your core expenditure was spent in the UK
Included Costs for Film Tax Relief:
- Your pre-production costs
- Principle photography
- Post-production
Excluded Costs:
- Bond payments to investors
- Any form of financing
- The development associated costs
- Entertainment
- PR
- Your capital expenditure is also ineligible
How Much Tax Relief Can I Get?
COMPLEX TAX INVESTIGATIONS
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Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.
GOT A QUESTION?
If you are looking to action any of these tips in our guide or if have any other queries about tax and planning your finances for your future, our Private Client Tax team are here to help. Get in touch with a member of the team for an initial chat now.
OUR EXPERIENCE
At Churchill Tax we have extensive experience dealing with HMRC Investigations and we regularly deal with Tax Inspectors within HMRC’s Specialist Investigations and Local Compliance Fraud teams. Our people have worked in Tax Investigations teams at ‘Big 4’ accountancy firms, niche tax investigations practices and within HMRC as Tax Inspectors. At Churchill Tax, our personal, friendly and understanding approach ensures that we provide the best possible service at the most competitive prices.
How Does Churchill Tax Handle My Claim?
1. Getting To Know You
2. Evaluating Your Costs
We will request your financials to evaluate your costs and calculate your benefit
3. Writing Your Claim
We will write the claim for you which you can look over before submission to HMRC – you can be as involved in the process of writing your claim as you want to be.
4. Rewards
Receive your benefit in either a reduction in your Corporation Tax liability or a payable credit
WHAT WE OFFER
When appointing a Tax specialist to act on your behalf, it’s important to know that you’re in good hands. You need to know that the advisor you appoint has the experience, skills and courage required to achieve the best possible outcome for you.
Our role is as much about supporting our clients personally as it is about providing professional and effective Tax representation. This is why we have implemented facilities such as flexible payment options , that aim to make the process straight forward and stress free.
Have you received a notification of HMRC investigation?
BOOK A CONSULTATION
Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.