Film Tax Relief

FTR is a UK government incentive that aids Film Production Companies (FPCs) by granting a tax rebate on pre-production, primary photography, and post-production expenditures.

FPCs can deduct up to 20% of the film's essential production expenses. If the business is profitable, tax relief can be used to lower the Corporate Tax obligation. Loss-making applicants are eligible for a 25% cash payout from HMRC.

To qualify for film tax relief UK, the FPC must meet the following criteria: be responsible for the production, planning, and decision-making during the pre-production, principal photography, and post-production stages for the film; the film must be classified as "British" by the BFI Certification Unit or qualifies as an official co-production; the film must be intended for theatrical release, and at least 10% of the core production costs must relate to activities in the UK.

You can claim FTR on the expenditure for the pre-production, principal photography, and post-production, referred to as core expenditure. This does not include development, distribution, or other non-production tasks. The Film Tax Reduction is claimed through the Corporate Tax Self-Assessment procedure (CTSA)

Film Production Company must complete the applicable part of the Corporate Tax Return (CT600). Accountants in Slough suggest the tax return must include the relevant additional information and either an interim or final certificate provided by the Department of Digital, Culture, Media, and Sport (DCMS) verifying that the film is British.

You must provide a statement showing all core expenditures broken down by category and UK and non-UK spending. A film production trade's taxable profit is calculated differently by HMRC.

A Film Production Company (FPC) is a company that makes a film, responsible for pre-production, principal photography, post-production, and delivery of the movie on completion. To qualify as an FPC, the company must meet specific criteria.