THE UK (HETV) VFX REBATE
The Audio Visual Expenditure Credits (AVEC) and Video Games Expenditure Credits (VGEC) are replacing the old system of creative sector tax reliefs.
The enhanced 39% rate (29.25% after tax) of Audio-Visual Expenditure Credit (AVEC) will apply for UK visual effects work on film and high-end television productions
The enhanced rate of the Audio-Visual Expenditure Credit (AVEC) is targeted at films with a core expenditure of up to £15 million (also referred to as the UK Independent Film Tax Credit or IFTC)
In order to qualify for the UK’s creative sector Audio-Visual Expenditure Credits (AVEC) or Video Game Expenditure Credit (VGEC), all films, animation and television programmes or video games must be certified as British through the cultural test or qualify as an official co-production
THE TAX RELIEF
VFX spending in the UK will receive a net rebate of 29.25% and will be exempt from the overall 80% cap on spending eligible for film and TV tax relief from 1 January
Visual effects costs incurred from 1 January 2025 will be eligible for the additional tax relief.
Companies will be able to claim the additional tax relief from 01 April 2025
The relief will be for costs incurred from 1 April 2024, provided they are a qualifying production which began principal photography on or after 1 April 2024
The British Cultural Test
THE CULTURAL TEST CERTIFICATE & APPLICATIONS
Download the Audio Visual Expenditure Credits & Video Games Expenditure Credits guidance notes here.
Please note our current turnaround time is 14 to 16 weeks from receiving your application to issuing a certificate, we would encourage productions and companies to build these longer timeframes into their schedules when applying for the cultural tests. Please apply as early as possible if you are under time constraints (BFI)