The UK government has provided a significant boost to the independent film industry with the introduction of an enhanced tax relief uplift, which is expected to create jobs and stimulate growth.
This new measure, known as the Independent Film Tax Credit (IFTC), was confirmed by the Chancellor and Culture Secretary as the London Film Festival kicks off.
For the first time, productions with a budget up to £15 million will be eligible for a tax relief of 53% on qualifying expenditures, while films with budgets up to £23.5 million will also be eligible, though with a tapered relief structure. This initiative is designed to help support the creation of more British indie hits, following in the footsteps of successful films like Aftersun and Billy Elliot.
The creative industries play a vital role in the UK economy, generating £125 billion annually. The film sector alone is worth £1.36 billion and provides employment for more than 195,000 people. The government’s tax relief is expected to further fuel growth, allowing the UK film industry to expand its global reach.
British indie films such as Rye Lane, Rocks, Bait, and Pride have gained international recognition by telling unique, award-winning stories about the UK. With the new relief, more such stories can be brought to the screen, offering greater representation of British lives and experiences.
To qualify for the IFTC, productions must have a UK writer or director, or be certified as an official UK co-production. This ensures the government’s focus on promoting home-grown talent while encouraging distinctly British content.
Productions qualifying for the relief must have started principal photography on or after 1 April 2024, and only expenditure incurred on or after 1 April 2024 can be claimed.
The statutory instruments will be laid on 9 October and will take effect from 30 October, which is the date from which the BFI certification unit can begin accepting applications.
The announcement comes ahead of the government’s International Investment Summit, where industry leaders and investors will explore opportunities to further boost investment in the creative industries.
Amy Jackson, producer of Aftersun, The Outfit, and The End We Start From, welcomed the news, stating: “This is a vital intervention for the UK industry. As a producer, this enhanced tax relief means I can focus on bringing incredible stories by British talent to the big screen while building exciting co-production opportunities. The IFTC will make UK indie films a more attractive investment for international partners.”
This latest tax relief measure is part of a broader government strategy to drive growth and create a favorable environment for confident investment across various sectors, including the creative industries.
