UK's AVEC Credit Replaces Four Film and TV Reliefs, With Old System Ending 31 March 2027

The United Kingdom now delivers its film and television tax support through a single credit. The Audio-Visual Expenditure Credit, known as AVEC, replaced the reliefs producers claimed. The government's policy paper describes the move as a reform of audio-visual creative tax reliefs.

The change affects the rate, the way qualifying spend is counted and the timetable. The credit is taxable, and the BFI gives a lower equivalent rate under the previous system for each headline rate. The older reliefs end on a fixed date, and a production's start date determines which regime it falls under.

Four Reliefs Become One Expenditure Credit

AVEC replaced Film Tax Relief, High-End TV Tax Relief, Animation Tax Relief and Children's TV Tax Relief. According to the British Film Institute, the credit took effect on 1 January 2024, and the government's policy paper says credits could be claimed from that date.

The government describes the design as similar to the Research and Development Expenditure Credit. The BFI describes the AVEC as a taxable credit and publishes an equivalent rate under the previous system for each headline rate.

Video games have a parallel scheme, the Video Games Expenditure Credit, which replaces Video Games Tax Relief. Film and television productions keep the older reliefs only for a limited period, and the policy paper says all productions must claim the credits from 1 April 2027, when those reliefs will end.

Headline Rates and Their Net Equivalents

Film, high-end television and video games receive a taxable credit at 34%. The BFI equates that to 25.5% under the earlier system.

Children's television, animated television and animated film receive 39%. The BFI equates that to 29.25% under the previous system.

Enhanced AVEC, known as the independent film rate, is set at 53%, which the BFI equates to 39.75%. It applies to films that started principal photography on or after 1 April 2024, and it can be claimed from 1 April 2025. The film must have total core expenditure of up to £23.5 million and meet a creative test: a British citizen or UK resident as lead director or lead writer, or an official co-production.

For projects with core expenditure between £15 million and £23.5 million, the enhanced rate applies only to the first £15 million. Projects above £23.5 million can claim only the standard AVEC rate.

Who Qualifies and How Spend Is Counted

A film must qualify as British by passing the cultural test, or as an official co-production. It must be intended for theatrical release and have at least 10% of its core expenditure as UK qualifying production expenditure, according to the BFI.

High-end television must be intended for broadcast and be a drama, comedy or documentary. It must average at least £1 million per hour and have a slot length of more than 20 minutes. Animation requires at least 51% of core spend on animation activity. Children's television needs a primary target audience under 15. Video games must pass their own cultural test and be intended for general public supply.

The credit is calculated on the lower of 80% of total core expenditure or the actual UK core expenditure incurred. The BFI says the 80% figure works as a limit on qualifying spend, and it states that the credit has no cap on the amount claimed.

A separate visual effects credit applies to qualifying expenditure incurred on or after 1 January 2025. It is available only to films and high-end television productions claiming the standard 34% rate, not to films claiming the enhanced independent rate. HMRC's September 2026 commentary says that, from 1 April 2025, companies can claim an enhanced 39% rate of AVEC on UK VFX costs, up from 34%, once the production has received a final certificate from the BFI.

HMRC's manual says AVEC and VGEC claims must include section 5 of the additional information form. For each production, companies report relevant global expenditure for the accounting period, the running totals for global and UK expenditure, qualifying expenditure for earlier periods, and the credit for the period. Total relevant global expenditure to date must be equal to or greater than the relevant global expenditure for the current claim period.

When Productions Must Switch to the New Credit

Productions starting on or after 1 April 2025 must claim expenditure credits, according to HMRC's September 2026 statistics commentary. The government's policy paper gives the same date for new productions.

Productions that began earlier can continue under the existing film, high-end TV, children's TV, animation and video games reliefs until 31 March 2027. After that date, all productions must claim the expenditure credits.

HMRC's commentary describes a substantial increase in AVEC claims compared with the older reliefs. The September 2026 release is the first to break out AVEC and VGEC separately, and it covers claims for financial years up to 31 March 2025.

What the 2026 Statistics Show

HMRC published its creative industries statistics on 17 September 2026. Total reliefs and expenditure credits paid across all creative industries reached £2.45 billion for 2024/25, up from £2.28 billion for 2023/24.

Film relief, including AVEC and independent films, came to £702 million, or 29% of the 2024/25 total. It covered 1,145 claims, and the amount paid rose 39% on the previous year, which HMRC mainly attributes to high-value claims above £5 million. Independent film AVEC accounts for an estimated £57 million across 145 claims.

High-end TV relief, including AVEC, came to £936 million, or 38% of the total, across 830 claims. That is a 10% fall on the previous year. HMRC suggests some of the fall may be due to feature-length productions moving into film claims. AVEC for high-end TV accounts for 365 claims and £670 million across 250 companies.

Taken together, film and high-end TV total about £1.64 billion, or roughly two-thirds of the overall figure. That combined total is a calculation from HMRC's numbers rather than a figure HMRC publishes.

Video games relief rose 18% and the number of productions rose 20%. Claims rose 72%, but HMRC says the increase is partly due to claims for the same production being made under both the old and new games reliefs.

For readers, the release shows the two regimes running side by side. The older reliefs are still being claimed in the same period that the new credit is growing, and the 2024/25 figures include claims under both systems.