Thursday 14th November
UK Tax breaks for independent filmmakers
The Government has given the independent film industry a major boost by introducing the Independent Film Tax Credit (IFTC), which offers 53% relief on qualifying expenditures for first-time productions. Productions must meet specific criteria to be eligible for this new relief.
IFTC criteria
- The production has a UK writer or director
- Must be a certified UK co-production
- Principal photography started on or after 1 April 2024
- Films must pass a BFI cultural test
- To qualify for a 53% expenditure credit (approx 40% tax relief), film budgets must be £15m or lower
- Film budgets up to £23.5 million are also eligible but with tapered tax relief
Filmmakers can apply for this tax relief from 30 October, when the BFI Certification Unit starts accepting applications.
Protecting production budgets
The introduction of increased tax relief provides a much welcomed financial boost for UK independent filmmakers and makes the industry more attractive to international film investors.
Preserving increased but limited film budgets is crucial to the success of any film. Risks increase once production starts on a busy film set, and sticking to a tight filming schedule is essential to keeping costs down. Film Production Insurance (FPI) is high on the priority list for many film producers because it helps protect film finances against a wide range of risks. Kerry London can arrange Film Production Insurance that covers the following risks on set:
Cast Insurance
Insures the production against additional costs (including abandonment) for accidents due to sickness or even the death of cast members.
Extra Expense Insurance
Covers physical damage to property by any external cause resulting in an interruption to the schedule or abandonment of the production.
Negative and Digital Media Insurance
Insures the cost of loss or damage to raw stock, exposed film, digital media, or digital media storage devices, including the soundtrack.
Props, Sets and Wardrobe Insurance
This covers the cost of replacements or repairs to owned or hired props, sets, and wardrobe during the production.
Miscellaneous Technical Equipment Insurance
Insurance for the cost of repairs or replacement of equipment resulting from physical loss or damage to owned or dry-hire cameras, sound, lighting and miscellaneous equipment used in production.
Property of Others Insurance
Insures the production’s legal liability for damage to or loss of third-party property used for the production and in the production’s care, custody or control that is not insured under any other section of the insurance.
Production Office Contents Insurance
Cover can be provided for loss or damage to temporary production office contents only.
Money Insurance
This insurance protects the loss, destruction or theft of cash and other negotiable documents carried or held by the production.
Employers’ Liability Insurance
Employers’ Liability (EL) Insurance enables the production to meet its legal liability by paying compensation for employee injuries in the workplace. It also covers the legal costs necessary to defend a claim. This section meets your legal requirement for Employers’ Liability Insurance.
Public & Products Liability Insurance
This section covers the potential legal liability to compensate third parties for a personal injury or property damage if the production is negligent.
Kerry London’s film insurance experts can also arrange insurance for European productions and the necessary insurance documents in the local territory via Kerry London Europe.
Ben Roberts, BFI Chief Executive, said:
“This is great news for UK film and is already having a positive impact across our industry. More films can now be made in the UK that audiences at home and internationally will get to enjoy. Independent filmmaking is vital to our cultural expression and creativity; it builds careers for talent in front of and behind the camera and showcases UK creative excellence on a world stage.”
The new tax credit was part of a broader package, including a £26M upgrade to the National Theatre’s stages and infrastructure and an additional £10M to the National Film & Television School.
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Kerry London is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent and Lloyd’s accredited broker, which means that we work with a wide range of niche and major insurers.
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