The BFI today welcomed the introduction of an enhanced 39% rate (29.25% after tax) of Audio-Visual Expenditure Credit (AVEC) for UK visual effects work on film and high-end television productions, announced today in the Chancellor of the Exchequer’s first Autumn Budget.
The additional tax relief for visual effects will come into effect 1 April 2025; costs incurred from 1 January 2025 will be eligible. In addition to the enhanced rate of relief being an increase on the previous rate of 25%, UK visual effects costs will also be exempt from the AVEC’s 80% cap on qualifying expenditure. This measure was announced in this year’s Spring Budget and it will be legislated in the Finance Bill 2024/25.
It is also an intervention that the BFI and the sector have long campaigned for and will help attract and retain visual effects work in the UK in an increasingly competitive international landscape….