UK Sets Proposal for Visual Effects Enhanced Film Tax Credit

The UK will offer legislation next year allowing film and television productions to claim a larger tax credit on domestic visual effects costs starting in April 2025, the Treasury said Wednesday.

Under the plan, which the government announced in March, companies will receive a 39% audio visual expenditure credit, a 5 percentage point increase on the normal rate of 34%, on their UK visual effects costs, the Treasury said. The costs will also be exempt from AVEC’s 80% cap on qualifying expenditure.

For purposes of the relief, the government will define visual effects as “work consisting of the ...