mobile-tko-logo
blue-close-btn

BFC chair welcomes rise in UK VFX tax credit

British Film Commission logo - a multicoloured clapperboard graphic

Credits will be claimable from 1 April 2025 for costs incurred since 1 January 2025, with costs associated with Generative AI also included

Confirmation in yesterday’s Budget (30 October) of the tax credit rise on UK VFX spend to 29% was welcomed by British Film Commission chair Adrian Wootton.

The proposals had first been raised in the March Budget this year, that from 1 April 2025, VFX costs in the UK will attract an increase in the rate of relief to 39% (29.25% after tax).

This represents an increase from the previous rate of 25.5% net – and will be exempt from the overall Audio-Visual Expenditure Credit’s 80% cap on qualifying expenditure. Credits will be claimable from 1 April 2025 for costs incurred since 1 January 2025, with costs associated with Generative AI also included.

Wootton said: “UK film and TV is globally admired, and a key sector driving economic growth. Our VFX sector is one of the jewels in the UK industry’s crown, with a depth of creative and technical expertise.

“But these are competitive times. Productions are looking globally for the best talent and incentives to guide their investment decisions. Any new measures must address intensifying global competition and help us put our best foot forward.

“Today’s confirmation of the VFX tax credit increase doubles down on UK strengths and will drive up investment. It is not only welcome, but essential to support our sector and wider UK growth.”

On the AI inclusion he added: “We’re delighted that HM Treasury has listened to industry feedback on Generative AI, and included these costs in the overall VFX tax credit enhancement. The BFC pressed for this in our consultation response and we believe this will play an important part in keeping our VFX sector future-proofed and globally competitive.”

Other reactions included:

Tracy McCreary, MD, BlueBolt
“This is a very good day for the UK VFX and filmmaking community! We’re delighted that this tax incentive will be effective from January 1st 2025. It will drive growth, and create more jobs, and help position the UK VFX industry as the first choice destination for international film and TV productions after a difficult period.”

Sue Lyster, executive in charge, Industrial Light and Magic, London
“We’re incredibly pleased to hear the announcement of improvements to the VFX tax incentive in the Chancellor’s Budget statement. This important step will undoubtedly retain and attract more VFX work to the UK.”

Mel Sullivan, CEO, Framestore
“The UK’s creative industries are the envy of the world, and the VFX industry has played no small part in this reputation. Not only is our work capable of transporting audiences to Hogwarts, Buckingham Palace or Darkest Peru, but it also helps fuel economic growth, drives inward investment, and creates high-quality jobs for brilliant people from a wide range of different backgrounds. It’s heartening to see such a vote of confidence in the VFX sector from the UK government, and we look forward to working with them to ensure our industry goes from strength to strength.”

Share this Article