GovWire

At Spring Budget 2024, the government announced that UK visual effects costs in film and high-end programmes will receive a 5% increase in Audio-Visual Expenditure Credit (total rate 39%). UK visual effects costs will also be exempt from the Audio-Visual Expenditure Credits 80% cap on qualifying expenditure. These changes will take effect from 1 April 2025.

This document sets out more detail about how the additional tax relief will work and invites comments on the governments proposed policy design, including the types of costs that will qualify. The document also provides the governments response to submissions to the call for evidence on the UK visual effects sector, which ran from 22 November 2023 to 10 January 2024.