According to the Chancellor of the Exchequer, beginning January 1, the tax incentive will attract a net rebate of 29.25%; claims for the rebate can be made from April 1.
Delivering Labour's first budget since coming to power in the July general election, Rachel Reeves announced that VFX spending in the UK will attract a net rebate of 29.25% which will be exempt from the 80% cap on spending eligible for film and TV tax relief. This had been proposed by the previous government in March, but the early election meant that the uplift was not implemented.
The Labour government has identified the creative industries as one of eight growth-driving sectors within its Industrial Strategy, and the VFX uplift is projected to attract an additional £175 million per year of spending and the creation of 2,800 new jobs.
Earlier this year, the Treasury had proposed to exclude costs relating to Generative AI from the VFX uplift. However, following consultation with the industry, this proposal has now been dropped.
As requested by the UK Screen Alliance, the tax incentive has been moved up from April 1, 2025 to January 1, 2025. The move will avoid production delays and allow VFX companies to get work flowing as they recover from last year’s writers’ and actors’ strikes. Claims for the rebate can be made from April 1.
“The confirmation in the Budget that the VFX rebate will be available from the New Year is terrific news for the UK’s visual effects companies,” said Neil Hatton, CEO of UK Screen Alliance. “We know that productions are making decisions right now on where to place their VFX work for 2025 and beyond. Today’s announcement means that these clients will be incentivized to place many millions of dollars of inward investment work with the UK’s award-winning VFX community, creating considerable value for the UK economy.”
Source: UK Screen Alliance
Journalist, antique shop owner, aspiring gemologist—L'Wren brings a diverse perspective to animation, where every frame reflects her varied passions.
