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Do you want to Claim Film Tax Credits for your Film?
Who can claim?
Your company can claim Film Tax Relief on a film if:
• the film is certified as British by the British Film Institute
• it’s intended for theatrical release
• at least 10% of the ‘core costs’ relate to activities in the UK
Core costs are what’s spent on pre-production, principal photography, and post-production.
Your company must be responsible for:
• pre-production
• principal photography
• post-production
• delivery of the completed film
Your company must also:
• be actively engaged in planning and decision-making
• directly negotiate, contract, and pay for rights, goods, and services
Cultural test
To qualify for creative industry tax reliefs, all films must be certified as British. The film must pass a cultural test or qualify through an internationally agreed co-production treaty.
The British Film Institute manages certification and qualification on behalf of the Department for Digital, Culture, Media, and Sport. The British Film Institute will issue:
• an interim certificate for uncompleted work
• a final certificate where production has finished
What you can claim?
You can claim an additional deduction to reduce your profits or to increase a loss. This will reduce the amount of any Corporation Tax you will need to pay.
The additional deduction will be the lower of either:
• 80% of total core costs
• the amount of UK core costs
If you make a loss, some or all of this loss can be surrendered for a payable tax credit at a rate of 25%.
When you can claim?
You may make, amend or withdraw a claim to creative industry tax reliefs up to one year after the company’s filing date.
HMRC may agree to accept late claims in some circumstances.
How to claim?
You can claim relief on your Company Tax Return. You will need to calculate the amount of:
• additional deduction due to your company
• any payable credit due
You’ll need to provide evidence.
For each production you should provide:
• a British cultural certificate from the British Film Institute — if an interim certificate is provided, you must send the final certificate after the film is complete
• statements of the amount of core costs, split between the UK and non-UK costs
• a breakdown of costs by category
Our experts have helped large and small productions claim this relief and put together the contracts required for productions.
For more information and assistance: Get in touch by WhatsApp on 07583452230 or email help@bizlawuk.co.uk. Please visit our website www.bizlawuk.co.uk to find out about our range of holistic legal and business services, check our 5-star testimonials and watch our YouTube channel or listen to our podcasts. Please follow, like, and share our social media content if you find it useful.
