Film studios are to receive business rates relief over the next nine years as the UK government rolls out a 40% reduction in business rates bills.
From this week, local authorities can begin implementing local schemes and awarding tax relief for film studios.
In October 2024, the government confirmed that it would proceed with Film Studio Business Rates Relief which will be available for eligible studios in England until 2034, and, where applicable, will be backdated to 1 April 2024.
The film and TV sector already benefits from other tax reliefs. The Audio-Visual Expenditure Credit (AVEC) provides companies with a tax credit worth 34% of their UK production costs on a film or high-end TV programme, or 39% of their production costs on an animation or children’s TV programme.
From 1 April, film and high-end TV companies can claim a credit of 39% on their UK visual effects costs; and eligible films with budgets of under £15m will be able to claim the Independent Film Tax Credit.
The creative industries sector employs 2.4 million people and is worth £124.6bn to the UK economy. Last year, there was £5.6bn of production spend in the UK.
Chancellor of the Exchequer, Rachel Reeves, said: “The UK leads the world in creating great film and TV and we should all be immensely proud of the impact we’ve had across the globe. From the Avengers to Indiana Jones, the UK has drawn in some of cinema’s biggest names thanks to a combination of fantastic local talent and a world-leading creative sector as well as attractive tax incentives.”
Culture Secretary Lisa Nandy said: “The UK’s film industry is truly world-class, producing global box office hits like Wicked and indie classics like Aftersun.
“The sector has huge potential for further economic growth and the government is ambitious for its future. Our new tax incentive, as well as other new measures like indie film tax reliefs and £25m funding for a new film studio in Sunderland, will help ensure we can continue to create British content, international blockbusters and high-quality jobs.”
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