Source · Select Committees · Culture, Media and Sport Committee
Recommendation 5
5
Rejected
Introduce 25% tax relief for P&A costs of films claiming Independent Film Tax Credit.
Recommendation
In the Autumn 2025 Budget, the Government should introduce a 25% tax relief for the Prints & Advertising (P&A) costs of films claiming the Independent Film Tax Credit, to support the distribution and exhibition of British films. (Recommendation, Paragraph 27)
Government Response Summary
The government rejects introducing a 25% tax relief for Prints & Advertising costs for films claiming the Independent Film Tax Credit, citing existing AVEC commitments, the Chancellor's discretion on tax policy, and a desire to avoid additional complexities.
Government Response
Rejected
HM Government
Rejected
The government has shown its commitment to keeping the UK’s Audio-Visual Expenditure Credit (AVEC) competitive by providing additional support for independent films at a rate of 53% and introducing a 5% uplift in relief for VFX costs as of 1 April 2025. We will continue to work with stakeholders to ensure the continued effectiveness of AVEC reliefs. The government regularly engages with the BFI and the British Film Commission on the competitiveness of the UK’s offer, and analysis of global incentives is produced regularly by Olsberg SPI.14 Government benchmarking global incentives every six months would be a disproportionate exercise, not least because what attracts film makers to the UK is much broader than just our competitive tax incentives, with government investment in infrastructure, funding to attract inward investment, and support for skills development also contributing to our overall competitiveness. There are a multitude of factors to consider when deciding on new tax reliefs beyond return on investment and sector impact, and the government is committed to ensuring that all public money is spent and targeted effectively across the full breadth of the creative industries and the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the wider public finances. One of the major attractions of the UK’s tax incentives, beyond their competitiveness, is the ease, simplicity and consistency of the process. The government therefore currently has no plans to introduce additional complexities on reporting spending across nations and regions. We do strongly agree with the Committee on the merits of having better data on regional spend, and government will engage with BFI and industry partners to better understand the feasibility of reporting regional spend on a voluntary basis.