APPLYING UK TAX INCENTIVES TO POST & VFX

There is no specific tax relief for VFX or post production in the UK, but both are allowable costs within the Audio Visual Expenditure Credit (AVEC), providing the qualifying criteria are met.

You do not need to perform all production activity in the UK and it is absolutely possible to claim UK tax relief for post and VFX only, even if no principal photograph occurs in the UK.

The current rate of relief is 25.5% net after tax. The minimum expentiture requirement of 10% must be exceeded and the project must qualify as British via the Cultural Test. Note that there may be sufficient points available in the Cultural Test to qualify if only performing VFX or post in the UK.

It is essential to set up a UK based limited production company (FPC or TPC) before shooting begins in order to account for all production costs, even if only the post-production or VFX occurs in the UK.

Currently tax relief is available on up to 80% of the total production budget. However the UK government has announced that from April 2025 that VFX will be immune from the 80% cap on eligable expenditure and will attract a higher rate of relief of 29.25% net. This will mean that productions can receive 25.5% relief on filming in the UK (on up to 80% of total budget) and still receive 29.25% on their VFX spend regardless of whether that spend takes their total UK spend above the 80% cap on eligability.

UK Screen Alliance SUPPORTERS