Long-awaited Independent Film Tax Credit greenlit by UK government
UK culture secretary Lisa Nandy
UK culture secretary Lisa Nandy has confirmed that the government has officially passed the eagerly awaited Independent Film Tax Credit (IFTC) into law, with relief available to producers from October 30.
The Labour politician made the announcement at the start of the British Film Institute’s (BFI) London Film Festival today, claiming the IFTC will help to showcase British content, encourage more international coproductions and create more jobs.
It will allow first-time productions with a budget of up to £15m (US$19.62m) eligibility to relief of 53% on their qualifying expenditure. Producers making movies with a total core expenditure of up to £23.5m can also benefit from the IFTC and the relief will be tapered.
Productions qualifying for the IFTC must have started principal photography on or after April 1, 2024, and only expenditure incurred on or after that date can be claimed.
Additionally, applicants must prove that their projects meet the terms of the BFI’s existing cultural test and have a UK writer or director, or be certified as an official UK coproduction.
The IFTC was announced under the last Conservative government as part of its March spring budget, and went through into the Finance Act in May, after years of lobbying by industry body Pact, the BFI and the indie film sector.
The current Labour government, led by PM Keir Starmer, hopes that the IFTC will help an embattled screen sector struggling with soaring inflation, rising production budgets and contraction within the industry.
It is hoped that the credit will complement the UK’s existing high-end TV and film tax credit, which has attracted streamer investment in the UK production industry.
Labour says that the creative industries generate £125bn a year and are a key part of the government’s strategy to boosting the UK’s economy.
Lisa Nandy said: “These reliefs will pay dividends both culturally and economically, inspire the next generation of talent across the country, deliver more great British content, and sustain a world-leading industry here in the UK.”
Ben Roberts, BFI Chief Executive, added: “Independent filmmaking is vital to our cultural expression and creativity, it builds careers for talent in front of and behind the camera, and also showcases UK creative excellence on a world stage.”
UK TV producers today welcomed the IFTC being passed into law.
Hakan Kousetta, founder of London-based 60Forty Films, the makers of Hijack and Slow Horses, said: “Delighted to welcome this vital support for the British independent sector. A thriving independent film sector is a key part of the industry’s ecology. It’s where myself and many others started our careers and is essential if we are to continue to produce some of the world’s best screen talent both behind and in front of the camera.”
