Independent filmmakers to get 53% tax relief on production costs

Independent filmmakers will soon be able to claim back 53% of spending on items such as equipment, location costs and paying actors.

Productions costing up to £15 million will be eligible for the tax relief, designed to encourage more people to make films in the UK.

Critically acclaimed films such as Rye Lane and Aftersun would have been able to claim the tax credit, with budgets of £3 million and £2.2 million respectively.

Chancellor Rachel Reeves said: “By supporting growth in this vibrant sector, we can create jobs and continue to show Britain at its best around the world.”

The UK film sector is estimated to be worth about £1.36 billion and employs more than 195,000 people.

The so-called Independent Film Tax Credit (IFTC) can be claimed on most costs related to shooting and producing the films, but not marketing and distribution.

The plans mark a continuation of a policy announced by former Conservative chancellor Jeremy Hunt in March.

Culture Secretary Lisa Nandy said: “The UK’s first-class independent filmmakers have a track record of creating cult classics and surprise hits that are enjoyed by millions.

“Their films showcase British culture and creativity to the world while also supporting thousands of jobs and driving economic growth in all parts of the UK.

“These reliefs will pay dividends both culturally and economically, inspire the next generation of talent across the country, deliver more great British content, and sustain a world-leading industry here in the UK.”

Ben Roberts, BFI chief executive, said: “Independent filmmaking is vital to our cultural expression and creativity, it builds careers for talent in front of and behind the camera, and also showcases UK creative excellence on a world stage.”

Zygi Kamasa, founder and chief executive of theatrical film distributor True Brit Entertainment – which specialises in independent British film, said: “The introduction of the new enhanced tax relief for UK films is great news for our industry and audiences.

“We are already seeing a positive sea-change for working with British talent and creating home-grown British films.

“Our new company True Brit is passionate about the kinds of films we can make in the UK, with projects prepped for production next year and others already being made in the UK.

“The ratification of the IFTC will ensure that many more independent British films will get made and be a significant boost to the entire industry.”