Indie Film Has a New Home in London

With eight sound stages of varying sizes, large unit base lots, and flexible workshops – we can accommodate productions that have different kinds of requirements. Many indie films we talk to just need a medium size stage and film primarily on location, some only need offices and workshops while filming in central or west London. Either way – our variety and versatility are well suited to the influx of productions taking advantage the changes in the UK Film Tax Credit. 

The UK is a global hub for film and television production, and one of the key factors driving this is the UK Film Tax Relief (FTR). Introduced in 2007, this incentive has been instrumental in attracting high-quality productions to British shores.  
 
In the fall of 2024, the Labour government announced the Independent Film Tax Credit (IFTC). The IFTC, officially known as the “enhanced audiovisual expenditure credit” (AVEC) for low-budget films, is aimed at films with a total core expenditure, or production budget, of up to £15m. These films can now benefit from an enhanced credit of 53%, which equates to an actual relief of just under 40%, on up to 80% of qualifying expenditure.

The IFTC (Independent Film Tax Credit) is a newly introduced credit that forms part of the recently launched Audiovisual Expenditure Credit (AVEC) system, alongside incentives for Film, High-End TV, Animation, and Children’s TV. It complements the existing incentives without replacing any of them. 

This relief is designed for independent film productions with budgets (excluding marketing and distribution) of less than £15 million. 

A new test, overseen by the British Film Institute (BFI), will be required for eligibility. Films must meet one of the following criteria: 

• Have a UK writer 

• Have a UK director 

• Be certified as an official UK co-production 

The IFTC offers an initial credit rate of 53% on qualifying expenditure. However, this is subject to the UK’s 25% corporation tax, resulting in an effective credit rate of 39.75%. 

For context, the effective rate for the AVEC Film credit is 25.5%. Therefore, this new scheme provides a significant 56% increase in the cash value of the incentive available to productions. 

As with other AVEC schemes, the 80% cap on total qualifying expenditure applies. For productions where more than 80% of the spend qualifies as UK expenditure, the effective rate rises to 31.8% (80% of 39.75%).

One of the primary reasons productions flock to the UK is the financial benefit of the tax credits. The 25% rebate on qualifying expenditure effectively reduces the cost of production by a quarter. For high-budget films, this can translate into millions of pounds in savings. These funds can then be reinvested in other areas of production, such as post-production, special effects, or securing better talent. The cash rebate is also paid out relatively quickly, providing filmmakers with the financial flexibility they need during critical stages of production. 

The UK tax relief scheme has been successful in attracting big-budget, international projects. Major Hollywood studios frequently choose to shoot in the UK not only because of its world-class production facilities (like Garden Studios) but also because of the financial advantages provided by the tax credits. This influx of international productions boosts the UK’s reputation as a film-making hub and brings external investment into the economy. 

The tax credits have had a knock-on effect on the UK’s film infrastructure. As more productions choose the UK, local talent—from actors to camera operators and post-production specialists—gain opportunities to work on larger, more complex projects. The constant demand for skilled labor has also led to the expansion and development of UK studios, such as the construction of our new Orchid stages coming 2025. 

Additionally, this growth in the local film industry has created a thriving ecosystem of ancillary businesses. From catering to costume design, the benefits of film productions extend far beyond the studio gates, enriching local communities. 

Park Royal in NW London is a great example of a growing hub for creative industries businesses. Check out some of those businesses at Reel Park Royal or the West London Business Creative landing page. 

Creative Enterprise West – West London Business 

Screen Capital West – West London Business 

While international productions have certainly benefitted from UK film tax credits, British films have also seen a major boost. The rebate allows independent UK filmmakers to stretch their often limited budgets further. It makes it easier for them to finance and produce high-quality films, ensuring that British stories continue to be told and that the local film industry remains competitive globally. 

The UK Film Tax Relief has been shown to deliver substantial returns to the British economy. According to the British Film Institute (BFI), for every £1 given in tax relief, £7 of economic activity is generated in the UK. This growth comes in the form of direct spending on film productions, job creation, and a boost to related industries like tourism, where film locations often become major attractions for fans. 

Furthermore, the continued influx of productions ensures steady employment for thousands of workers in the film industry. This reliability has been vital for sustaining jobs and growing the skills base within the UK. 

The continued success of the UK’s tax relief schemes has prompted the government to introduce similar incentives for high-end television series, animation, and video games. These initiatives further cement the UK’s position as a leader in creative industries. 

At Garden Studios, we want to warmly welcome productions to leverage the new tax relief available. Get in touch today to see how we might be able to help in aiding you navigate this new benefit. 

You can learn more about how to qualify and apply for the tax credit at the British Film Institute website.