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UK FILM AND TV TAX CREDITS IN 2026: WHAT IT MEANS FOR YOUR POST-PRODUCTION.

Industry guide · Tax credits

By Fitzrovia Post · 12 October 2026

The basics: AVEC replaced the old reliefs

The UK’s creative industry tax reliefs have been reformed into expenditure credits. According to the BFI, AVEC replaced the film, high-end TV, animation and children’s TV tax reliefs on 1 January 2024, and the Video Games Expenditure Credit (VGEC) replaced Video Games Tax Relief on the same date. New productions have had to claim under the new credits since 1 April 2025, and all productions must do so from 1 April 2027, when the old reliefs end. (BFI)

To claim, a film or programme must be certified as British by the BFI, through the cultural test or an official co-production treaty, and at least 10% of its core costs must relate to activities in the UK. HMRC defines core costs as spending on pre-production, principal photography and post-production. (GOV.UK)

The rates in 2026

HMRC lists the following expenditure credit rates: (GOV.UK)

The credit is worked out on qualifying costs, which are the lower of 80% of total core costs or the actual UK core costs. (GOV.UK)

For high-end TV, dramas, comedies and documentaries must have average core costs of at least £1 million per hour of slot length and a slot length of more than 20 minutes per episode. (GOV.UK)

The 53% credit for independent films

The enhanced credit for lower-budget films applies to films that began principal photography on or after 1 April 2024. The BFI says a film must have total core expenditure of up to £23.5 million and meet one creative connection: a British or UK-resident lead director, a British or UK-resident lead writer, or official co-production status. The 53% rate applies to the first £15 million of core expenditure; above £23.5 million, only standard AVEC can be claimed. (BFI)

HM Treasury and HMRC confirmed that films claiming the independent film credit cannot also claim the separate visual effects or animation uplifts, because the 53% rate was calculated with independent film sector trends in mind. (GOV.UK)

Where post-production counts

HMRC’s Creative Industries Expenditure Credit Manual says the location in which post-production services are consumed is decided independently of where earlier production took place. In its words, linking an editor’s work to the location of principal photography “would produce results which are at odds with the policy objectives” of AVEC, because it would not encourage the use of a UK editing company on a culturally British film shot partly or wholly abroad. (HMRC manual CREC054230)

The manual says the same approach applies to other post-production services, such as editing and sound synchronisation. If a production company subcontracts post-production, it needs to establish from its suppliers how much of the work is done inside and outside the UK, because only services used or consumed in the UK attract relief. (HMRC manual CREC054230)

One of HMRC’s worked examples concerns music: a score recorded by an orchestra in London is treated as used or consumed in the UK, but the work of incorporating that music during post-production in the United States is not UK expenditure. (HMRC manual CREC054230)

Visual effects: a stricter test

The additional 39% VFX credit has a narrower test. HMRC says relevant visual effects work must be “carried out in the United Kingdom”, not just used or consumed there. Claims can only be made for the completion period of a production or later periods, and the extra credit is not available to independent films claiming 53%. HMRC notes that in most cases, unless VFX spend is unusually high, claiming as an independent film will be more beneficial. (HMRC manual CREC061410)

How to claim

Credits are claimed on the production company’s Company Tax Return. For returns submitted on or after 6 April 2026, the CT600P Creative Industries supplementary page must be included. Each claim needs an additional information form with the BFI certificate, statements of core costs split between UK and non-UK, a breakdown of costs by category and details of connected party transactions. Claims can be made, amended or withdrawn up to two years after the end of the period of account. (GOV.UK)

What producers should check before booking post

Fitzrovia Post provides audio post, picture post, ADR and voice recording from 14 studios in central London. To talk through your schedule and delivery, send us a project brief.

FAQ

Does post-production qualify for UK film and TV tax credits?
Yes. HMRC defines core costs as spending on pre-production, principal photography and post-production, and only UK core costs count towards the credit.

Can UK post-production qualify if the film was shot abroad?
Yes. HMRC says the place where post-production services are used or consumed is decided independently of where principal photography took place, so UK editing and sound work can be UK expenditure.

What is the AVEC rate for film and TV in 2026?
The rate is 34% for most films and TV programmes, 39% for animation and children’s TV, and 53% for independent films claiming the enhanced credit.

What is the UK Independent Film Tax Credit?
It is an enhanced AVEC at 53% for films that began principal photography on or after 1 April 2024, with total core expenditure of up to £23.5 million and a UK creative connection. The rate applies to the first £15 million of core expenditure.

Can independent films claim the VFX credit?
No. Films claiming the 53% independent film credit cannot claim the separate 39% visual effects credit.

When do the old film and TV tax reliefs end?
According to the BFI, all productions must claim under the expenditure credits from 1 April 2027, when the old tax reliefs end.

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