HM Treasury has launched a consultation on the five percentage point increase in Audio-Visual Expenditure Credit (AVEC) and removal of the 80% cap on qualifying expenditure for visual effects costs. These are changes that were announced at Spring Budget 2024, with the extra AVEC support proposed for film and high-end television, giving a total credit rate of 39%. The 80% cap on qualifying expenditure will not apply for UK visual effects costs, under the changes. Both will have effect from 1 April 2025.
The consultation considers the detail of how the additional tax relief will work and invites comments on policy design, including the types of costs that will qualify. The document also provides the UK government’s response to submissions to the call for evidence on the UK visual effects sector, which ran from 22 November 2023 to 10 January 2024. The new consultation runs until 22 May 2024 and draft legislation is expected at some point during summer 2024.
HM Treasury has launched a consultation on the five percentage point increase in Audio-Visual Expenditure Credit (AVEC) and removal of the 80% cap on qualifying expenditure for visual effects costs. These are changes that were announced at Spring Budget 2024, with the extra AVEC support proposed for film and high-end television, giving a total credit rate of 39%. The 80% cap on qualifying expenditure will not apply for UK visual effects costs, under the changes. Both will have effect from 1 April 2025.
The consultation considers the detail of how the additional tax relief will work and invites comments on policy design, including the types of costs that will qualify. The document also provides the UK government’s response to submissions to the call for evidence on the UK visual effects sector, which ran from 22 November 2023 to 10 January 2024. The new consultation runs until 22 May 2024 and draft legislation is expected at some point during summer 2024.
