The UK government is leveling the tax relief playing field for animated feature films by upping the amount these projects can claim to 39% of budget, bringing them on par with animated television productions.

Starting on January 1, 2024, the Audio-Visual Expenditure Credit (AVEC) will cover both types of animation production. Movies could previously only claim 25% of budget through the Film Tax Relief, so this jump to 39%—and the parity with TV—is good for the country’s entire animation industry, according to a statement from trade org Animation UK, which lobbied for the change and celebrated the news today. 

“Not only do these animations attract significant budgets (in the ballpark of US$19.5 million to US$130 million), they also herald advanced technological breakthroughs, while offering long-term, sustainable employment opportunities for a workforce of up to 250 people throughout the entirety of a project’s lifespan,” said executive chair Kate O’Connor. 

The UK government only introduced its new AVEC credit in March for TV productions, with the goal of growing the value of its creative industries by US$50 billion over the next seven years. 

UK producers also anticipate that this latest development will incentivize investment in talent and technology to produce big-budget animated films, according to Britt Gardiner, COO of Locksmith Animation and chair of the Animation UK features working group.

The level playing field for raising financing for films is especially important because it can take at least five years to develop, fund and produce a feature, adds Aardman managing director Sean Clarke. This new support for films provides “some real and meaningful certainty to allow the UK animated film industry to continue to thrive,” he says. 

Photo courtesy of Chris Lawton via Unsplash