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Overview of audio visual expenditure credit (AVEC)

From 1 January 2024 tax relief for films or TV programmes is given through the audio-visual expenditure credit (AVEC). Prior to 1 January 2024 relief was provided through an additional corporation tax deduction or a tax credit (see the Film production company tax credits and Television tax reliefs ― key provisions guidance notes). The transition to the revised tax relief rules post 1 January 2024 is voluntary but will be obligatory for new productions from 1 April 2025 and for all productions from 1 April 2027, at which point the previous tax reliefs will cease. Where a company elects into the AVEC and the accounting period straddles 1 January 2024, expenditure is apportioned.

AVEC is a taxable credit which can be claimed by qualifying film and TV companies on certain expenditure. The amount of the credit is