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Claims and conditions for enhanced rate of AVEC

Two new Regulations set out conditions for the enhanced rate of AVEC and the date from which applications for low-budget certificates can be made.

The Corporation Tax (Certification as Low-Budget Film) Regulations, SI 2024/1009 set out the budget condition and creative connection condition, and the necessary supporting evidence for those conditions, for the purposes of the enhanced audio visual expenditure credit (AVEC).

The 53% enhanced AVEC rate is available for films which qualify as British under the Films Act 1985, Sch 1 and which also meet the budget and creative conditions tests.

The Regulations provide the following:

1. •

   to qualify for the enhanced AVEC rate, the film’s total core expenditure must not exceed £23.5m (enhanced AVEC is available in relation to £15m of the total)

2. •

   in relation to the requirement for a director or scriptwriter to be a British citizen or otherwise resident in the UK, where there are multiple directors or screenwriters the test will apply to the lead individual in the role