Taxation of film production companies

The following tax relief for film production companies applies 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 still available for new productions up to 31 March 2025 and continuing productions up to 31 March 2027 but from 1 April 2027 these tax reliefs will cease.

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