EP NowStoreAcademySupportProduction LotProducts by Country
Blog Home

UK Production Incentives All Producers Should Know About

Don't miss out on the UK's tax incentives, special programs, and national and regional funding opportunities for films, HETV, and more!
November 17, 2022

Joseph Chianese

Next time you’re considering an international film destination, take a closer look at the UK – a film-friendly nation that comprises England, Scotland, Wales, and Northern Ireland. The UK has a lot to offer producers – with generous tax incentives, stable funding opportunities, an ever-growing production infrastructure, and diverse filming locations.

In 2021 in the UK, producers spent a record-breaking £5.6b ($7.7b) on film and big-budget HETV productions – a 23% increase from 2019. Of that spend, more than £4.7b (84%) can be attributed to inward investments from major international productions.

With money coming in, more talent is also migrating to the area, simplifying the process of staffing key crew positions. Productions also have access to all-inclusive facilities that feature flexible studio space, standing sets, on-site costume, prop shops, and more. And the UK isn’t the only one investing! US-based Blackhall Studios is building £150 million, state-of-the-art Shinfield Studios in Reading, England.

It’s clear that the UK is devoted to supporting a production's physical needs – but the deal gets even sweeter when it comes to financing.

Lucrative UK funding opportunities

There are many unique programs that can be used to secure funding for film, animation, TV projects, and even gaming. Having access to government-backed funding options is especially beneficial today, as production companies continue to combat increased costs related to inflation and COVID compliance.

Four key types of financing are available: Tax Relief, UK Global Screen Fund Grants, National Funds, and Regional Funds. Here’s how they work:

1. Tax Relief

The UK has a reliable, transparent, stable tax credit program called Tax Relief for Films, Animation, High-End & Children’s Television programming, and Video Games. The Tax Relief available for films and high-end television (HETV) programming is highlighted below.

  • For all British qualifying films & HETV of any budget level, the UK production company can claim a payable cash rebate of up to 25% on UK qualifying expenditures
  • Tax relief is capped at 80% of the core expenditures (meaning, even if you have 100% UK-qualifying expenditures, tax relief is only payable on up to 80%)
  • There is no limit on the budget of the project or the amount of relief payable within the 80% cap

UK qualifying production expenditure is defined as expenditures ‘used or consumed’ in the UK. This includes costs incurred by the production company on filming activities – pre-production, principal photography, visual effects, and postproduction – that take place within the UK, irrespective of the nationality of the persons carrying out the activity.

A project must meet specific eligibility criteria (e.g., Film: 10% of the project's core expenditures must be UK expenditures, HETV: £1M per broadcast hour,) and must pass the British Cultural Test or be part of an approved co-production treaty to qualify as 'British.'

Points can be earned for:

  • Cultural Content: Films set in the UK or European Economic Area (EEA), British or EEA lead characters, British or EEA subject matter, and English, EEA, or UK indigenous language original dialogue (max of 18 points).
  • Cultural Contribution: Films that demonstrate British creativity, heritage, or diversity (max of 4 points).
  • Cultural Hubs: Film locations (e.g., if at least 50% of principal photography, SFX, or VFX takes place in the UK. Bonus points if 80% or more takes place in the UK). Points are also earned for music recording and audio and picture post that takes place in the UK (max of 5 points).
  • Cultural Practitioners: Individual project contributors from the UK or EEA, including the director, scriptwriter, producer, composer, lead actors, and key staff. If a majority of the cast or crew is native to the UK or EEA, the production earns a point (max of 8 points).

Productions can earn a maximum of 35 points and must reach a threshold of 18 points to pass the test.

Please note: on November 17th the UK Treasury Department announced plans for industry consultation on reforms for the UK Tax Relief, with the intention to simplify and modernize the tax reliefs, boost growth, and make sure the tax reliefs remain sustainable. Proposed changes include:

  • Merging of the film, animation, high-end TV, and children’s TV tax reliefs into a single tax credit.
  • Modernizing the HETV tax relief: The proposals include increasing the minimum £1M threshold (to more accurately reflect current production costs,) and changes to the 30-minimum requirement (to curb the incidents of the grouping together of multiple shorter episodes to qualify for the relief.) Defining documentaries in legislation for HETV has also been proposed; “documentary” is currently not defined, which has led to boundary pushing: the government has seen an increasing number of HETV tax relief applications from programs that are borderline reality television.
  • Removing the 80% cap on qualifying expenditures.

UK Treasury is asking for feedback until February 9, 2023 from individuals, companies, representative and professional bodies, accountants, tax advisors and lawyers, with the reforms to be implemented in Spring 2024.

5 pound note rolled up.png

2. The UK Global Screen Fund

Eligible productions can apply for grants via the UK Global Screen Fund (UKGSF), a program overseen by the British Film Institute. Financed by the Department for Digital, Culture, Media, and Sport, the UKGSF aims to boost international development and distribution opportunities for film, TV, animation, documentary, and video games from the UK's independent screen sector. After a successful £7M pilot year, the program was extended for three years and received an additional £21 million in funding.  

The UKGSF offers funding in four key areas:

  • International Distribution: Supports UK sales agents to increase their international promotion and sales of live action and animated, fiction and documentary UK feature film projects, and provides the following:
    • Funding relating to the international sale, marketing, and promotion of a single eligible UK film in the form of non-recoupable grants
    • Up to £25,000 for a single eligible film

      The film must:
      • Be budgeted at less than £10 million
      • Be a new feature length (minimum 60 minutes running time) live action, animation, fiction, or documentary film
      • Be either complete, in production, or in post-production
      • Have been completed within the 12 months prior to the application date, or will be completed within 12 months of the application date
      • Qualify or be wholly capable of qualifying for certification as a British film
      • Not be fully financed by a studio or mini major
      • Not be intended for a TV or SVOD premiere
  • International Business Development: Supports UK screen content businesses across film, TV, animation, and interactive narrative video games to enhance their international activities. Eligible companies can apply for funding using one of two tracks:
    • Film transformation track: Funding for internationally focused transformational business strategies related to independent UK film. Strategies must start in early 2023 and span three to five years.
    • General track: Funding for business strategies to create, acquire and/or exploit intellectual property (IP), covering all eligible screen sectors, for increased international revenue, audiences, and profile. Strategies must start in early 2023 and span three years.

      Eligible companies can apply for funding between £50K and £200K in total over the three-year period, with support in the form of non-repayable grants (applicable to both the film transformation track and the general track).
  • International Co-production: Supports UK producers to work as partners on international co-productions and help create new global projects. Eligible companies can apply for funding of up to £300K towards:
    • ‘Minority’ feature film co-productions (co-productions where the contribution of at least one of the other co-producing partners is greater than the overall contribution of the UK producer) in any language or genre, including fiction, animation, and documentary, which are co-produced with international partners
    • Television co-productions (whether ‘minority’ or ‘majority’ in nature) in the animation and documentary genres only, in any language, which are co-produced with international partners

      Support will be in the form of non-recoupable grants.
  • Prints and Advertising (P&A): Support for UK producers to reach international audiences:
    • Funding towards certain eligible P&A costs for the release of a single UK film across a grouping of at least four international territories
    • Up to £100K in total, in the form of non-recoupable grants, across an eligible territory grouping
    • Within the £100K, up to £30K for a single territory as part of the eligible territory grouping

More detail on eligible costs, activities and other guidelines can be found at the BFI website. You can also visit the UKGSF website for complete eligibility criteria and application details.

film set green screen-ryan-garry-CPXS543H19Y-unsplash.jpg

3. UK National Funds

London is often top of mind when producers think about filming in the UK, but choosing to film in other areas can open up access to more incentives. In fact, the UK has an entire incentive program, called "Made Outside London," or MOL, that encourages production outside of the capital to boost local economies.

Recent big-name films to utilize MOL tax incentives include Warner Bros’ The Batman, filmed in Liverpool, and Wonder Woman 1984, filmed in Wales. 

So, what kind of incentives can you find outside of London? Scotland's Production Growth Fund typically awards between £200K and £500K to each qualified project. And eligible productions can receive funding packages up to £400K from the Welsh government agency Creative Wales.

In addition, Northern Ireland Screen offers funding towards the production of feature films, TV drama, animation, factual and entertainment television, and interactive content, in the form of a recoupable loan with profit participation, or in limited circumstances a grant. The fund is intended to assist in completing budgets on productions which are almost fully financed – a production must have at least 65% of its funding already in place to be considered.

Designed for productions which contribute to building a sustainable screen industry in Northern Ireland, eligible projects must be commercially viable and able to demonstrate a direct economic benefit to the region. In the case of feature films, the attachment of an experienced sales agent would be an asset, as would UK or US domestic distribution. For television, an expression of interest from an international distributor or network broadcaster is preferable.

Northern Ireland also offers cultural funds, and programs to support film education, digital film archive, and skills and training.

4. UK Regional Funds

These funds give productions that film in a particular city or metro area an extra financial boost. Each regional fund is designed to attract productions – and the jobs that come along with them – fueling economic growth across the UK.

Regional funds include:

  • Yorkshire Content Fund: A public-private investment that provides up to £500K in funding to TV, film, video games, and digital projects.
  • Liverpool City Region Production Fund: Open to local and national companies, this fund invests up to 20% of the production budget with a £500K project cap.
  • West Midlands Production Fund: Supports projects in Shropshire, Staffordshire, Warwickshire, Worcestershire, Herefordshire, Stoke-on-Trent, Telford and Wrekin, Birmingham, Coventry, Solihull, Wolverhampton, Dudley, Sandwell, and Walsall. The fund invests up to £500K in eligible projects - including higher-end feature film and TV drama productions and projects at an advanced stage of secured financing with a director, lead producer, and established industry partners attached.

Regional funds are available in addition to tax relief programs, national funds, and Global Screen Fund grants.

How to optimize UK production benefits and funding incentives

Figuring out the best location, incentives, credits, and grants can be overwhelming, but you don't have to do it alone. If you decide to explore the UK as a filming destination, give EP's tax incentive team a call. Our experts know production incentives and funding options inside and out. We'll help you to optimize your budget by securing the most lucrative financing opportunities for your next UK-based project. As a starting point, check out our incentives calculator to learn what funding opportunities and tax benefits are available to you.

To learn more about the UK's generous film incentives, talent pool, infrasctructore, and more, watch the Master Series webinar Behind the Boom: Why the UK is a Hotspot for Production.

Once you've decided on a location, EP's Production Portal – the workforce management platform for compliant UK production – will help you to streamline and simplify your reporting. Track regionality across your productions to instantly see how much you're spending on crew and use that data to support your tax reporting! And rest assured, EP will help you through the entire process – from greenlight to wrap.

Related Content

California vs. the World: The Race to Nab Film and TV Productions

8/22/2024
Locales from Atlanta to Tokyo are steadily beefing up their tax relief programs in bids to attract...
More
Master Series Thumbnail–UK indie film tax credit

Boost Your Budget with the Independent Film Tax Credit

5/9/2024
Learn how to maximize UK incentive dollars with the new IFTC!
Cameraman filming outside in a field

HMRC Announces Changes to Claiming UK Creative Sector Tax Incentives

4/26/2024
What productions should know about the increased disclosure requirements under the UK's Audio-Visual...

What Does the UK's New Independent Film Tax Credit (IFTC) Mean for Productions?

3/7/2024
As the UK government strengthens its support for productions, find out what the latest changes to the...
Self-employed crew members work on set

New UK Employment Rights Bill: Significant Reform for Film & TV's Self-Employed?

10/29/2024
The highly anticipated Employment Rights Bill makes some major changes to UK employment law. But what does...
Film crew on UK independent film tax credit production

UK Independent Film Tax Credit (IFTC) Approved: Key Updates for Producers

10/10/2024
The UK government has passed the new Independent Film Tax Credit (IFTC) into law, providing welcome...
RTS Film & TV Mini MBA students

Royal Television Society Launches Film & TV Mini MBA with Support from EP’s FLB Accountants

10/3/2024
This first-of-its-kind course is aimed at media professionals who want to broaden their skillset and...
Dark-haired woman operates a steadycam on set

The Producer’s Guide to Unions in the UK Film and TV Industry

10/1/2024
Take a whistlestop tour of the main unions governing the UK film and TV industry so that you can be...
People on set discuss incentives estimates

Incentives Estimate or Opinion Letter: Which One Is Right for My Production?

9/25/2024
Looking to obtain funding for your production? Learn whether an incentives estimate or an opinion letter...

Ontario Ready for Hollywood Post-Strikes Reality: “It’s a Reset Year for Everyone”

9/9/2024
Slowly but powerfully the major studios and streamers have returned to shoot originals on a tighter budget...
The Ankler logo-black and white-square

TV Production Exodus: 'Misery in L.A.', Who's Getting 'Screwed' and What to Do About It

9/3/2024
As streamers ship series elsewhere, lawyers and producers vent, and the state (finally) takes action....
Thumbnail-Master Series panelists discuss Australia's Location Offset film incentive

How to Maximize the Benefits of Australia’s 30% Location Offset

8/22/2024
Learn how to boost your production's budget with the recently ratified Location Offset, other state and...
Cameramen with professional equipment films two young people

What is an Incentives Estimate and Why Do I Need One?

8/21/2024
Find out how an incentives estimate can help you to lock down your production's finance plan and turn your...
UK Phases Out Biometric Residence Documents

More Right to Work Changes as UK Phases Out Biometric Residence Documents

8/8/2024
Find out what UK productions should do to prepare for the expiration of biometric residence permits on...
Topic: Legal
More
Camera man on a film set

How Could the UK’s New Labour Government Impact Employers in the Film & TV Industry?

7/25/2024
Learn about policies proposed under the Labour government's 'New Deal for Working People' that may impact...

How Production Incentives Help Indie Filmmakers Choose the Best Filming Location

7/9/2024
Learn how selecting the right location can play a large part in preserving your production budge, thanks...

How to Secure Film Financing: An Overview for Independent Producers

6/19/2024
From choosing the right funding source to setting up LLCs and agreements, learn about the financing...
EP News_SQUARE_Breaking Down Barriers-How Leading UK Organisations are Driving Inclusion in Film and TV

Breaking Down Barriers: How Leading UK Organisations are Driving Inclusion in Film and TV

6/17/2024
Notable UK training bodies and industry partners gather to reaffirm their mission to drive change and...
Woman looking at a laptop

20 IR35 Terms Every Production Worker Should Know

5/28/2024
Find out how to apply the UK’s IR35 rules to your film and TV productions with this helpful overview.
director looking at a woman on a camera monitor

Is New Jersey the New Hotspot for Filming on the East Coast?

5/14/2024
From attractive tax incentives to creative advantages, find out why the Garden State is emerging as a...
black and white filmmaker logo

Credits Where Credits Are Due

5/7/2024
Scott Macaulay looks at the state of film tax incentives in 2024.
Fully Focused-Thumbnail-480

Entertainment Partners and Fully Focused Partner to Support the Future of UK Production

5/7/2024
New partnership aims to foster the next generation of UK production professionals and break down barriers...

Spotlight: Lloyd Gunton, UK Tax Credit Expert

5/7/2024
Meet the creative sector tax expert helping EP clients from indies to major studios maximize incentives...
EP Blog-Bob Clarke-Mama Youth

Celebrating (Almost) 20 Years of MAMA Youth Project

4/17/2024
UK charity’s founder, Bob Clarke, shares how this unique initiative is breaking down barriers to...
Producer and actor standing on a film set

How to Prepare for an Audit: Tips for UK Productions

4/16/2024
Discover key strategies UK film and TV production companies can use to effectively prepare for an audit.
Topic: UK
More
Camera man and production crew on a film set

Curious About Co-productions? What Producers Need to Know.

4/9/2024
Discover the advantages, requirements, and strategies for successful co-productions in the film industry.
Los Angeles Times logo-sq

Georgia Film Tax Credit Bill Fails

4/1/2024
Georgia lawmakers kill effort to cap film tax credits as production hub continues to rival California.
National Film and Television School

Entertainment Partners To Provide Funding For Future Assistant Directors And Floor Managers

3/28/2024
Two new scholarship opportunities are now available for those looking to train in the field of assistant...

Entertainment Partners Hosts 'An Independent Producer's Survival Guide' in Park City

2/27/2024
Joe Chianese, EP’s SVP & Production Incentives Practice Leader, brings independent filmmakers and industry...
Four panelists discuss co-production-square

Unlocking the Myths and Benefits of Co-Production

2/15/2024
Learn the difference between an official co-production and PSA, and how to leverage these opportunities to...
EP Newsroom-Thumbnail-PGGB

Million Youth Media Wins The Duke of Edinburgh Film & TV Inclusion Award 2024 at PGGB Talent Showcase

2/14/2024
The Duke of Edinburgh Film & TV Inclusion Award presented to Million Youth Media, an organisation offering...

Payroll & Finances

PayrollResidualsSmartStartSmartTimeProduction PortalEP On LocationSmartAccountingEP LiveSmartPOCASHétPayPaymaster Rate GuideEP ResidencyMoneypenny

Manage Multiple Productions

AssetHubSmartHub

Additional Services

Academy
Subscribe now

Be an industry insider with EP's
newsletters and alerts

LegalPrivacy NoticeSecurity
© 2024 Entertainment Partners. All rights reserved.