UK indie films of up to £15m will benefit from a 53% tax relief.

The UK government today greenlit a previously-announced tax relief uplift for UK independent features, aimed at supercharging the domestic film industry as part of its overall drive for national economic growth. The news was confirmed by the chancellor and culture secretary at the start of the London Film Festival.

The new Independent Film Tax Credit (IFTC) stipulates that productions with a budget up to £15m are now eligible for a relief of 53% on qualifying expenditure. The previous government had made the announcement about the planned new incentive in March this year, but that had not been fully legislated until now, and the full criteria had not been set.

Films with a budget up to £23.5m are also eligible for the IFTC and the relief will be tapered. One of the criteria for the new relief is that films must have a UK writer or director, or be certified as an official UK co-production.

The creative industries generate £125 billion a year, with the UK film sector already worth £1.36 billion and employing more than 195,000 people; it is expected these figures will climb with the new relief.

The announcement comes ahead of the government’s International Investment Summit next Monday that will gather UK leaders, high-profile investors and businesses from across the world to discuss how to deepen partnerships to drive investment and growth, including in the creative industries.

Productions qualifying for the relief must have started principal photography on or after 1 April 2024, and only expenditure incurred on or after 1 April 2024 can be claimed.

The statutory instruments will be laid on 9 October and will take effect from 30 October, which is the date from which the BFI certification unit can begin accepting applications.

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.”

Amy Jackson, producer of Aftersun, The Outfit and The End We Start From, commented: “This is a vital intervention for the UK industry, which I wholeheartedly welcome. Making British indie films is tough, but this enhanced tax relief means that as a producer I now have crucial support to explicitly focus on bringing incredible stories by British talent to the big screen while building out exciting co-production opportunities.

“The IFTC will make UK indie film a more attractive investment prospect for international partners and co-producers facilitating more creative collaboration and bringing much needed backing to the independent sector across the board.”

BFI chair Jay Hunt said: “The speed with which the Government has turned this around shows how vital this intervention is for independent film. It will have a game changing impact across the whole UK screen sector – creatively and economically.”

Ben Roberts, BFI chief executive, remarked: “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 also showcases UK creative excellence on a world stage. We’re grateful to Government, the DCMS and the industry for working together to establish this transformative tax relief uplift where it is most needed.”