The Government has confirmed that the Independent Film Tax Credit (“IFTC”) – announced at the last Budget (and commented upon here) – will come into effect from 30 October, having laid the necessary statutory instruments before Parliament.

The IFTC is an above-the-line credit available for films that have total core expenditure of up to £15m and that have received a new accreditation from the British Film Institute. The credit rate will be 53% of qualifying expenditure, which equates to an effective rate of 39.75%. As with other creative reliefs, qualifying expenditure is capped at a maximum of 80% of a film’s total core expenditure. Films with a budget up to £23.5 million are also eligible for the IFTC and the relief will be tapered. In order to qualify for the relief, productions must have started principal photography on or after 1 April 2024, and only expenditure incurred on or after 1 April 2024 can be claimed.

Commenting on the announcement as the London Film Festival was set to begin, the Culture Secretary, Lisa Nandy, said “the UK’s first-class independent filmmakers have a track record of creating cult classics and surprise hits that are enjoyed by millions. Their films showcase British culture and creativity to the world while also supporting thousands of jobs and driving economic growth in all parts of the UK. These reliefs will pay dividends both culturally and economically, inspire the next generation of talent across the country, deliver more great British content, and sustain a world-leading industry here in the UK.”

The BFI certification unit will begin accepting applications for the IFTC on 30 October, and more information can be found in the Government press release here.