Tax breaks / incentives
Support for film culture and the film industry in the UK is extensive, with tax breaks in place for film, high-end TV, animation and children's live action drama. The BFI's cultural test is in place to determine which productions qualify.
For film, a tax relief is available to productions that are identified as British and spend at least 25% of their production costs in the UK. This includes pre-production, principal photography and post-production. As of 21 August 2015 producers could benefit from the availability of a tax relief at 25% on all production expenditure regardless of the budget of the production. (Before 21 August 2015 productions received 25% tax relief on the first £20m and only 20% after).
In April 2013, a tax relief was introduced by the government to high-end TV (in particular drama) and animation, applying to productions with budgets exceeding £1m per hour of TV.
If a tax relief is granted to a production (providing it also identified as British or European in the Cultural Test), it can claim back 25% back as a cash payment, provided that money is spent on core production expenditure.
In April 2015, a tax relief of 25% of production expenditure to children's live action drama also came into effect.
For further details about tax relief for both film and high-end TV, the British Film Institute (BFI) certification unit should be the first point of contact, which can be contacted here. Applicants are encouraged to contact the certification unit as early as possible to discuss their applications.
There are also various regional funding bodies such as Screen Yorkshire whose finance can be used on top of the UK national tax relief.