Taxation of film production companies

The following tax relief for film production companies that applied prior to 1 January 2024 on which date the revised relief for audio-visual content known as the audio-visual expenditure credit (AVEC) became available, see the Audio visual expenditure credit (AVEC) ― key provisions guidance note. The film tax relief detailed below is closed for productions that start principal photography from 1 January 2024 and will close for all productions from 1 April 2027.

Film production companies (FPCs) are subject to a special regime for tax purposes. The legislation has two parts as follows:

1. •

   the first part applies to all film production companies regarding the recognition of income and costs plus the treatment of losses, which is a different regime to that of other trading companies

2. •

   the second part provides for an additional tax deduction or repayable tax credit to the company where a qualifying film is produced

For details of the film tax credit, see the Film production company tax credits guidance note. Film production companies have