The next generation of indie films have been handed a major boost by the government with the introduction of a tax relief uplift, which will create jobs and drive growth by making more British hits like Aftersun and Billy Elliot possible.
The Independent Film Tax Credit (IFTC), confirmed by the Chancellor and Culture Secretary as the London Film Festival gets underway, will mean that for the first time productions with a budget up to £15 million will be eligible for a relief of 53% on qualifying expenditure. Films with a budget up to £23.5 million are also eligible for the IFTC and the relief will be tapered.
The creative industries are a key part of the economy, generating £125 billion a year, and form a central part of the Government’s mission to grow the economy. The UK film sector is already worth £1.36 billion and employs more than 195,000 people, with the potential to grow further thanks to these reliefs.
British indie films like Rye Lane, Rocks, Bait and Pride tell award-winning stories about our country, celebrating parts of our culture that often get less exposure. This relief will allow more stories like these to be told, enabling more people to see their lives and experiences reflected on screen.
To support the Government’s commitment on more distinctly home-grown content and talent, for films to meet the criteria for this new relief, they must have a UK writer or director, or be certified as an official UK co-production.
The announcement comes ahead of the government’s International Investment Summit next Monday which will gather UK leaders, high-profile investors and businesses from across the world to discuss how we can deepen our partnership to drive investment and growth, including in the creative industries.
The new measures are the latest in a series of interventions from the government to drive growth, which is creating the conditions for confident investment and trusted partnership with business. From major investment in carbon capture to securing billions in investment from Blackstone and Amazon Web Services, this government is committed to working hand in hand with business to drive growth and investment across many sectors.
Culture Secretary Lisa Nandy said: “The UK’s first-class independent filmmakers have a track record of creating cult classics and surprise hits that are enjoyed by millions. Their films showcase British culture and creativity to the world while also supporting thousands of jobs and driving economic growth in all parts of the UK.
“These reliefs will pay dividends both culturally and economically, inspire the next generation of talent across the country, deliver more great British content, and sustain a world-leading industry here in the UK.”
While the last few years have been challenging, in part because of the end of the pandemic streaming boom and US writers’ strikes halting productions, in recent decades the UK’s film industry has enjoyed strong growth. Tax incentives for film, first introduced in 2007, helped to bring the production of blockbusters to Britain, but the government is ambitious that it can grow further.
While major film production has flourished, smaller independent films have not received sufficient support. The tax credits uplift announced today will help the independent film sector reach its full potential, creating jobs and contributing to driving economic growth across the country.
Adrian Wootton OBE, Chief Executive of Film London and the British Film Commission, said: “This is fantastic news for UK film. We operate in a finely-balanced ecosystem: the vibrancy of our independent film sector is critical to the ongoing success of the UK’s inward investment film and HETV sector, and vice versa. Today’s measures show a Government committed to the importance of nurturing limited budget film-making for our economic and cultural futures. The new credit really will be a game-changer, attracting more investment than ever before from international studios for UK-made indie films, and stimulating international co-productions. We’ve already seen significant interest in the IFTC from the inward investment community. With it now enshrined in law, we look forward to seeing a whole new generation of UK-made stories come to the fore”.
