CREC091000 - Commencement and transition: commencement

The Audio-Visual and Video Games Expenditure Credits (AVEC and VGEC) can be claimed on expenditure incurred from 1 January 2024. 

Initially, they are optional. Companies can continue to claim the former tax reliefs instead if they wish. 

The former reliefs are: 

  • Film Tax Relief 

  • High-End Television Tax Relief 

  • Animation Tax Relief 

  • Children’s Television Tax Relief 

  • Video Games Tax Relief 

AVEC and VGEC become mandatory for new productions from 1 April 2025. 

For productions which have begun before 1 April 2025 but not yet started principal photography (for film and TV) or entered the production phase (for video games) by that date, expenditure incurred from 1 April 2025 is only eligible for AVEC or VGEC. 

The former tax reliefs will cease on 1 April 2027. Expenditure incurred from that date can only be relieved under AVEC or VGEC, for all productions.

Independent film (CREC021100)

The enhanced rate of AVEC for independent films (known in legislation as certified low-budget films) is available to films which begin principal photography on or after 1 April 2024, on expenditure incurred from that date. Any expenditure incurred before that date is eligible for AVEC at the standard rate of 34% (or 39%, for animated films).

Note that for accounting periods ending before AVEC commenced on 1 January 2024, only Film Tax Relief is available. If an accounting period straddles 1 January 2024, only Film Tax Relief is available for the notional period falling before that date. Film Tax Relief does not have an enhanced rate for independent films. For more information about notional periods and other transitional rules, please see CREC092100.

Claims to the enhanced rate of AVEC for independent films may only be made to HMRC from 1 April 2025.