Read end-to-end by a FundingAtlas editor against the official source.
Quick answer
A UK corporation tax credit for film, high-end TV, animation and children's TV production that passes the cultural test. UK corporation tax credit for qualifying expenditure on film, high-end TV, animation and children's TV. Replaces previous separate film/TV reliefs for accounting periods starting on or after 1 January 2024. It is aimed at UK production companies on qualifying audio-visual productions. Eligibility typically requires UK production companies meeting the cultural test for qualifying productions. Application: Claimed
Funding amount
Varies
Region
United Kingdom
Stage
Any stage
Provider
HMRC
Advisor view
This is a UK creative-sector relief — value comes from disciplined production accounting and cultural certification, not from clever structuring. Get the BFI/certification track moving early.
Frequently asked questions
- Is AVEC a grant?
- No. It is a UK corporation tax credit available to qualifying production companies. Loss-making productions can receive a payable cash credit element.
- Does AVEC replace the previous film and TV reliefs?
- Yes — for accounting periods starting on or after 1 January 2024, with transitional rules for productions previously claiming under the older reliefs.
- Who can claim?
- Only the qualifying production company holding chain of title and operationally responsible for production. Group structure matters.
- What is the BFI cultural test?
- The certification process that confirms a production qualifies as a British production for the purposes of the credit. Interim and final certificates are issued.
- Do the rates vary by category?
- Yes — film, high-end TV, animation and children's TV have rates set by the legislation. A specialist accountant will confirm the applicable rate for your production.
- Is there a per-hour expenditure threshold for high-end TV?
- Yes — high-end TV must meet a minimum per-hour core expenditure threshold to qualify.
- Can co-productions claim?
- Where the production qualifies under the cultural test or relevant treaty and is delivered through a UK production company, claims are possible on UK qualifying expenditure.
- Can we claim during production?
- Interim claims based on interim certification are possible — work with your production accountant on cash flow timing.
- Are development costs included?
- The scope of qualifying expenditure is technical and category-specific. Confirm with a specialist before assuming a cost is qualifying.
- What does HMRC look at on enquiry?
- Chain of title, cultural test certification, the qualifying / non-qualifying cost split, and adequacy of supporting records. Build the working papers as you go.
Who it's for
UK production companies on qualifying audio-visual productions.
Usually too early when
Advisor signal
You have no qualifying UK production company, no certification application planned, or you cannot evidence the cultural test and core expenditure thresholds.
Eligibility
UK production companies meeting the cultural test for qualifying productions.
Evidence you'll need
BFI cultural test certificate, qualifying expenditure breakdown, additional information form.
Application timeline
Claimed via the Company Tax Return.
Common reasons applications fail
Cultural test not passed, expenditure not qualifying.
What improves your odds
A production accountant who has filed similar claims, on-time interim certification, and a chart of accounts that separates core expenditure from non-qualifying spend.
Typical successful applicant
A UK production company with a defined project, BFI certification in progress, and finance teams that understand the cultural test and qualifying-cost rules.
Common misconceptions
It is not a grant — it is a corporation tax credit available only to the qualifying production company. Chain-of-title decides who can actually claim.
What happens next
Credit applied via the Company Tax Return; cash credit possible if loss-making.
What comes next
Submit certified accounts with the CT600, retain production records, and plan how the credit flows into your cash forecast.
Funding context
Sits alongside BFI funding, Arts Council support, broadcaster commissions and equity investment. The relief is one piece of a wider financing plan.
Related routes
Industries
Objectives
Regions