What is Audio Visual Expenditure Credit (AVEC)?
The Audio Visual Expenditure Credit (AVEC) is the UK’s new tax relief scheme for film and television productions, replacing existing reliefs including Film Tax Relief and High-End TV Tax Relief.
Available for qualifying expenditure from 1 January 2024, AVEC applies to:
- Films
- High-end TV programmes
- Children’s TV programmes
- Animation
Older relief schemes are closing to new productions from April 2025, making AVEC the primary route for creative sector tax relief going forward.
Who Can Claim AVEC?
AVEC is available to the production company responsible for delivering the project.
To qualify, your company must:
- Manage pre-production, principal photography and post-production
- Be actively involved in planning and decision-making
- Contract and pay for production rights, goods and services
The relief is designed to support production activity, rather than early-stage creative development.
What Productions Qualify?
Qualifying Films
To qualify, films must:
- Be certified as British
- Be intended for theatrical release
- Have at least 10% UK core expenditure
Qualifying TV Programmes
Eligible TV productions must:
- Be certified as British
- Be intended for broadcast or streaming
- Include at least 10% UK expenditure
- Fall into one of the following categories:
- Drama or comedy
- Documentary
- Animation
- Children’s programming
Eligible and Excluded Content
Eligible Categories
- High-end TV (drama, comedy, documentary)
- Animation
- Children’s programmes
Excluded Content
- Advertising or promotional material
- News or current affairs
- Game shows, chat shows or competitions
- Live events (unless produced specifically for filming)
How Much Can You Claim?
AVEC is calculated based on qualifying production expenditure, with clear rules around what can and cannot be included:
- Only core expenditure qualifies (pre-production, filming and post-production)
- Development costs are excluded
- Claims are based on UK expenditure, capped at 80% of total costs
Additional Relief Opportunities
- Independent films may qualify for an enhanced 53% credit rate
- Visual effects (VFX) expenditure may attract additional relief at 39%
Key Requirements to Claim
To make a valid AVEC claim, your production must:
- Pass the British cultural test (via BFI certification)
- Be treated as a separate production trade for tax purposes
- Submit an additional information form alongside your tax return
- Provide appropriate supporting documentation and evidence
Claims must be submitted within 2 years of the end of the accounting period.
Co-Productions and International Projects
AVEC also applies to qualifying co-productions, where projects:
- Fall under official UK co-production agreements
- Are certified as British
This allows production companies to work internationally while still accessing UK tax relief.
Why Work with Lumina?
Creative sector tax reliefs are detailed, technical and subject to increasing scrutiny.
Lumina, part of Ad Valorem Group, supports production companies by:
- Assessing eligibility against AVEC criteria
- Preparing clear, compliant claims and documentation
- Supporting with HMRC enquiries and evidence requirements
- Providing practical guidance throughout the production lifecycle
We focus on ensuring your claim is accurate, compliant and fully supported, giving you confidence in the outcome.
Ensure you claim the Audio Visual Expenditure Credit you’re entitled to.
Whether you’re producing a film, series or animation, our specialists will guide you through the process and help you prepare a robust, compliant claim.
Speak to the Lumina team today to discuss your project and eligibility.
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