Claiming Audio-Visual Expenditure Credits for Corporation Tax
Source: gov.uk (2025-05-21)

Check if your company qualifies for Corporation Tax Audio-Visual Expenditure Credits and what you can claim.

Watch a video about how creative industry tax reliefs work.

What are creative industry tax reliefs and how do they work? (https://www.youtube.com/watch?v=N5hz64Y8pa8)

If you’re a company claiming tax relief you can claim Audio-Visual Expenditure Credit (AVEC) on expenditure incurred from 1 January 2024 on:
- film
- high-end TV programmes
- children’s TV programmes
- animation
Who can claim

Your company must be responsible for:
- pre-production
- principal photography
- post-production
- delivery of the completed film or programme
You company must also:
- be actively engaged in planning and decision-making
- directly negotiate, contract and pay for rights, goods and services
Check if your company qualifies as the production company (https://www.gov.uk/guidance/corporation-tax-creative-industry-tax-reliefs) before claiming the relief.

Cultural test

To qualify for creative industry tax reliefs, all films and TV programmes must be certified as British. The film and TV programme 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 Culture, Media and Sport.

The British Film Institute will issue:

an interim certificate for uncompleted work

a final certificate where production has finished

You can find more information about certification and applying on the British Film Institute website (https://www.bfi.org.uk/certification).

Check if the production qualifies for the expenditure credit

Your company can claim the expenditure credit on a film if:

it is certified as British by the British Film Institute

it is intended for theatrical release

at least 10% of the ‘core costs’ are related to activities in the UK

A film is an animation if at least 51% of the ‘core costs’ are spent on animation.

A film is an independent film if it is certified as a low-budget film by the British Film Institute. To be certified, your film must:
- begin principal photography on or after 1 April 2024
- have a UK writer or director or be an official co-production
- have ‘core costs’ less than £23.5 million
Your company can claim the expenditure credit on a TV programme if:

it is certified as British by the British Film Institute

it is intended for broadcast to the general public — this includes streaming online

at least 10% of the ‘core costs’ relate to activities in the UK

the programme is a drama, comedy, documentary, animation or children’s programme

A TV programme is:

a children’s programme if the primary audience for the programme is expected to be under the age of 15

an animation if at least 51% of the ‘core costs’ are spent on animation

Your company can claim the expenditure credit on dramas, comedies and documentaries if they:

have average ‘core costs’ of at least £1 million for each hour of slot length

have a slot length in relation to the programme which is greater than 20 minutes for each episode

TV programmes commissioned together are treated as one programme.

Core costs are what is spent on pre-production, principal photography and post-production

You can check if the production qualifies for the relief (https://www.tax.service.gov.uk/guidance/check-if-your-production-or-exhibition-qualifies-for-corporation-tax-relief).

What you can claim

Watch a video about calculating creative industries expenditure credit.

How to calculate the amount of Creative Industries Expenditure Credit? (https://www.youtube.com/watch?v=Jfc4ny46Sv0)

You can claim an expenditure credit based on a percentage of your qualifying costs. Qualifying costs will be the lower of either:
- 80% of total core costs
- the amount of UK core costs
You can claim the following expenditure credit rates:
- 39% of qualifying expenditure for children’s TV programmes, animated films and animated TV programmes
- 53% on independent films
- 34% on all other films and TV programmes
The higher rate for independent films can be claimed from 1 April 2025. It applies to costs incurred from 1 April 2024. Independent films may only claim relief on up to £15 million core costs.

From 1 April 2025 films and TV programmes with a rate of 34% can claim further credit for visual effects costs. Costs incurred from 1 January 2025 are eligible. Visual effects costs have a rate of 39% and are exempt from the 80% cap on total core costs.

Your company’s total expenditure credits for a period are taxed at the main rate of Corporation Tax.

They are then used to pay off your Corporation Tax liability.

They can also be used to pay off other tax liabilities if you have them, or surrendered to group companies.

If you have credit remaining after this, you will receive a payable credit for that amount.

Work out how:

much creative industries expenditure credit (https://www.gov.uk/guidance/work-out-creative-industry-tax-relief-or-expenditure-credits-for-your-production) you can claim for your production

to redeem the value of the creative industries expenditure credit (https://www.gov.uk/guidance/work-out-how-to-redeem-creative-industry-expenditure-credits) you can claim

When you can claim

You may make, amend or withdraw a claim for creative industry tax reliefs up to 2 years after the end of the period of account the claim relates to.

HMRC may agree to accept late claims in some circumstances.

How to claim

Watch a video about how to claim creative industry tax relief.

How to make a claim for creative industries tax relief (https://www.youtube.com/watch?v=U9nTsziMR7o)

Claim expenditure credits on your Company Tax Return (https://www.gov.uk/company-tax-returns).

You will need to work out the amount of expenditure credit:
- due to your company
- used to pay off your tax liabilities
- surrendered to group companies
- due as a payable credit
You must submit an additional information form (https://www.gov.uk/guidance/support-your-claim-for-creative-industry-tax-reliefs) as evidence for your claim for creative industry tax reliefs.

For each production you must provide:

a British cultural certificate from the British Film Institute — if you send an interim certificate, you must send the final certificate after the film is complete and the certificate must be in date when you submit it

statements of the amount of core costs — split between UK and non-UK costs

a breakdown of costs by category

details of connected party transactions

Get more information

You can find more information, including examples of how the expenditure credit is calculated, in the creative industries expenditure credit manual (https://www.gov.uk/hmrc-internal-manuals/creative-industries-expenditure-credit-manual).