AVEC — UK Audio-Visual Expenditure Credit

The UK Audio-Visual Expenditure Credit (AVEC) was introduced in January 2024 as the universal incentive mechanism for film, high-end television (HETV), animation and children's TV. It replaced the previous suite of separate reliefs (Film Tax Relief, HETV Tax Relief, Animation Tax Relief, Children's TV Tax Relief).

AVEC is claimed through the UK corporation tax system. The British Film Institute (BFI) administers cultural certification and qualification; HM Revenue & Customs (HMRC) administers processing and payment.

AVEC is first-class for Northern Ireland-based Togra producers — a NI-incorporated producer company files AVEC through the UK corporation tax system on a NI-shot or UK-shot production exactly as a London-based producer would. For Ireland-based producers, AVEC is the UK-side credit on cross-border productions with UK or NI elements — see Cross-border productions — Ireland + Northern Ireland + UK for stacking with Section 481 — the Irish scripted tax credit.

Headline rates

The IFTC is the headline change vs the pre-2024 regime: a substantially enhanced rate intended to nurture a sustainable UK independent film sector. Independence criteria include not being part of a major studio group.

Eligibility

• UK qualifying expenditure capped at 80% of the core production budget
• Project must pass the BFI Cultural Test OR be an official co-production (see Cultural Test (UK AVEC))
• All productions must spend at least 10% of core budget on goods or services used or consumed in the UK
• HETV must additionally meet a minimum threshold of £1 million per broadcast hour

For IFTC specifically:
- Budget cap £15 million
- Must meet specific independence criteria (not part of a major studio group)
- BFI issues a separate low-budget certificate under its own eligibility test

For the VFX uplift:
- Only applies where the production is claiming the standard 34% AVEC rate (not animation/children's at 39% or IFTC at 53%)
- The VFX expenditure is exempt from the 80% UK qualifying expenditure cap
- Subject to specific HMRC conditions

Administration

Cross-border with Ireland

Irish producers working on cross-border productions with UK or NI elements can structure to access both Section 481 — the Irish scripted tax credit and AVEC — see Cross-border productions — Ireland + Northern Ireland + UK. Each credit is calculated only against expenditure in its own jurisdiction (no double-dipping).

Post-Brexit, AVEC does not count as state aid for Irish S481 / S487A cumulation purposes — the UK is not an EU Member State, so AVEC is excluded from the Irish 50% cap calculation. The 60% cross-border allowance under the EU Cinema Communication applies only where more than one EU Member State funds the production; Ireland + UK does not get the 60% allowance. See State Aid — the EU cumulation cap and its mitigations for the full rule.

What replaced what

The pre-2024 UK regime had four separate reliefs:

• Film Tax Relief (FTR)
• HETV Tax Relief
• Animation Tax Relief
• Children's TV Tax Relief

These were consolidated into AVEC with effect from 1 January 2024. Higher rates, a streamlined unified regime, and faster returns are the principal upgrades. From 1 April 2025, the VFX uplift was added.

How Togra supports AVEC

The AVEC tracker covers the UK-side eligibility scoring + BFI Cultural Test scoring + IFTC budget + independence checks where applicable. Cross-border productions get both the S481 readiness tracker and the AVEC tracker side by side, with the state-aid cumulation panel mapping public funding from both jurisdictions against the EU cap.