Consultation on additional tax relief for visual effects

Help shape the design and scope of enhanced tax relief for VFX

At Spring Budget 2024, the government announced plans to strengthen support for visual effects (VFX) in film and high-end TV.

These plans include:

• increasing the tax relief for VFX costs by 5%, for a total credit rate of 39% under the Audio-Visual Expenditure Credit
• removing the previous 80% cap on qualifying expenditure, for UK visual effects costs

These changes are slated to come into force on 1 April 2025.

The government will publish draft legislation for the additional tax credit in Summer 2024. Existing tax reliefs for film and high-end TV won't change and will end on 1 April 2027.

Consultation objectives

The government is consulting on how the enhanced tax relief for visual effects will work and which costs it will cover. The feedback will help the government to identify and address any unintended issues before finalising the legislation.

Find details on the additional tax relief for visual effects consultation.

Who should respond

This consultation is open to various groups, including:

• individuals
• representative bodies
• visual effects companies
• film and TV production firms
• accountants and legal experts

If you wish to share your views, you can email them to vfxconsultation@hmtreasury.gov.uk.

First published 28 March 2024