As we move through the 2026 Award Season, with the BAFTAs fresh in our mind and the Oscars just weeks away, the global spotlight is on the UK audio-visual production. Behind the red carpets, the fiscal engine that powers these productions is evolving. The transition to the Audio-Visual Expenditure Credit (AVEC) is now in full swing, as legacy tax schemes are phased out.
In the briefing, I explore this new fiscal regime and share insights for finance and production leads on navigating the transition, maximising their credits and enhancing financial resilience.
The latest BFI statistics released (released 5 Feb) confirm that our sector is more than ‘culturally significant’, it is an economic powerhouse. In 2025, UK film and high-end TV (HETV) production spend reached a staggering £6.8 billion, a 22% increase year-on-year. Of this, £2.8 billion was spent on film alone, the highest on record. As an Audit Partner working daily with media and entertainment leads, I see firsthand that this growth if fuelled by a sophisticated ecosystem of talent, infrastructure, and tax incentives.
However, UK creative businesses, from small independent filmmakers to established production companies, are facing mounting pressures from rising costs and global competition. With legacy reliefs like the Film Tax Relief now sunsetting, financial predictability and targeted government support are vital for long-term survival and continued innovation.
The AVEC is designed to operate similarly to the Research and Development (R&D) credit, offering a tangible ‘above-the-line’ tax credit based on qualifying expenditure for accounting periods ending on or after 1 January 2024. This is especially pertinent as the Film Tax Relief remains open only to productions commenced before 31 March 2025, leaving a gap that AVEC is poised to fill for new projects.
One of the most valuable aspects of AVEC is its potential to stimulate investment. With the UK economy still navigating the ripples of the November 2025 budget and ongoing global uncertainty, incentives like AVEC encourage companies to continue investing in production, talent, and innovation. By lowering the financial barriers to entry and expansion, AVEC helps entrepreneurial SMEs and larger corporates plan with greater confidence, ultimately safeguarding jobs and nurturing homegrown talent.
Applying for tax reliefs has historically been a complex process, fraught with ambiguity and administrative burden. The AVEC’s design, with clear criteria and streamlined claims processes, makes it easier for businesses to claim what they deserve. With our specialist knowledge and experience of creative businesses, at HW Fisher, we play a pivotal role in helping production companies identify eligible projects, prepare claims, and ensure full compliance with HMRC requirements. This not only secures the maximum benefit but also expedites the approval process, helping businesses maintain healthy cash flow.
Another important feature of AVEC is its inclusivity. By supporting a wide range of audio-visual productions, from documentaries to animated children’s programmes, the scheme acknowledges the diversity within the sector. This is essential for maintaining the UK’s global reputation as a creative powerhouse and for promoting cultural output that reflects Britain’s rich heritage.
The AVEC is a much-needed incentive for UK creative industry. It directly addresses the financial challenges of the current climate, boosts investor confidence, and ensures that the UK remains a global destination for production.
As the industry gathers to celebrate the best of 2025, our focus is on ensuring your 2026 and 2027 seasons are financially resilient and ready to compete on the world stage.
Contact our experts to understand the available reliefs to you in more detail.
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