The introduction of the UK’s Independent Film Tax Credit (IFTC) has been hailed as a momentous turning point for the local film industry. From April 2025, the IFTC will allow eligible films budgeted under £15m to opt-in to claim enhanced Audio-Visual Expenditure Credit (AVEC), at a rate of 53%, on their qualifying expenditure, which equates to around 40% in relief.
However, questions still remain about how the new credits will work in practice, with concerns ongoing for producers about raising financing and escalating production costs.
BFI’s deputy CEO Harriet Finney, who will be taking part in a panel at Cannes’ UK Pavilion exploring the IFTC on Saturday May 18 at 11.30, said: “It is early days but the immediate and continued response from the industry, from producers, directors, writers and production partners, has been overwhelmingly positive. Producers have been calling us to say that projects that they just couldn’t get them off the ground in this budget range (of up to £15m) to say that they are now able to move forward. It really is a game-changer.
“Of course, in terms of having the processes in place, that is still in progress, but we are working at speed with government to have everything nailed down so that producers to start making claims next April.”
She’ll be joined by Bennett McGhee of UK production outfit Home Team (Mogul Mowgli), Judith Chan, executive director at bank Coutts&Co and Isla MacGillivray, partner at chartered accountant Saffery.
“The new IFTC is a huge boost to independent filmmakers, especially at a time when the landscape is particularly challenging,” said McGhee. “I suspect many producers instantly reached for their finance plans and narrowed the gap or fully wiped out the deficit they had. There’s great anticipation. We’re still awaiting Royal Ascent and some guidance, but once we have these, and more to the point once the lenders and tax accountants do – we can truly get going.
“A new era of independent film? That’s an entire ecosystem thing, but like I said it’s a massive boost and a component hopefully towards that.”
The panel will also be discussing the updated AVEC for film and high-end TV that was introduced as of January, with a headline credit rate of 34%. This equates to 25.5% in actual relief, capped at 80% of core expenditure, but with no budget limit, and a small increase on the 25% previously available.
Later on at the UK Pavilion, at 2pm, Guevara Namer, DOK co-pro market coordinator; Dok Leipzig; Alessandra Pastore, market manager, When East Meets West; Justin Pechberty, co-founder, Les Valseurs; and Elhum Shakerifar, producer and curator, Hakawati, will be exploring how to find an international partner and maximise the opportunities offered through participating in international co-production forums and markets.
At 4pm, in a panel titled ‘developing new audiences for independent film: international case studies’ will see international audience development experts discuss innovative projects and release strategies to reach new audiences.
On the panel will be Sarah Calderon, director, The Film Agency; Ian Cartwright, co-founder of Elevenfiftyfive; Manon Dulauroy, distribution director, Piece of Magic Entertainment; and Anne Pouliquen, director at Futura Cinema, discussing how young film lovers are engaging with arthouse films through the European Film Challenge project and how fans and influencers can shape a distributor’s release strategy.
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