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The government has introduced a 40% reduction in business rates bills for eligible film studios to make the UK a more creative and economically powerful nation.This film studio business rates relief is to boost the UK film and TV industry, which already contributes £124.6 billion to the UK economy and employs 2.4million people.

From February 2025, local authorities can begin implementing local schemes to deliver the relief. The relief is available to eligible film studios in England until 2034 and can be backdated to 1 April 2024, where applicable. This is government recognition to encourage more box office hits to be made on British soil.

How the Film Studio Relief Works

This new rate relief for film studios is a 40% reduction on gross business rates bills.It's a mandatory relief, so local authorities are required to grant it to qualifying properties. The government will fully reimburse the billing authorities for the relief they grant, so there's no cost to them.

Important note: eligible film studios don't need to apply for the relief. It's designed to be awarded automatically by their individual local billing authority. This simplifies the process, meaning qualifying businesses receive the benefit without the administrative burden.

Who is Eligible for the Relief?

The eligibility criteria are specific. The relief applies to properties or parts of properties used wholly or mainly as a film studio. This means the site must have sound stages and be used for the primary purpose of making commercial films and TV programmes.

The Valuation Office Agency (VOA) will identify these properties. The relief covers both existing and older filming studios, as well as new developments, including previously industrial buildings, provided they meet the usage criteria. Campus sites with multiple eligible properties can also benefit.

Transitional and Other Reliefs

This 40% film studio rate relief can be combined with other reliefs, such as transitional relief, which phases in changes to business rates bills followinga revaluation. The government has confirmed that the 40% relief will be appliedto the gross bill before any other reliefs are calculated. This means the studio gets the maximum benefit.

A Package of Support for the Creative Sector

This business rates relief is one of several measures aimed at supporting the film and TV industry. It sits alongside the existing Audio-Visual Expenditure Credit(AVEC), which offers a 34% tax credit on UK production costs for movies or high-end TV programmes. This increases to 39% for an animation or children's TV programme.

From 1 April 2025, the government will introduce additional support. Film and high-end TV companies will be able to claim 39% on their UK visual effects costs. The Independent Film Tax Credit will also be available for eligible films with budgets under £15 million, allowing them to claim 53%.

Future and Reviews

The long-term commitment, extending until 2034, demonstrates the government's dedication to the sector's growth. While the 40% rate is fixed, the government reviews tax and relief policies. Industry bodies, such as the British Film Commission, will continue to lobby for the sector's interests to ensure that support levels remain effective.

This shows the government has listened to the creative industries. By reducing the operational costs for film studios, they can invest in expanding facilities and attracting major international productions.

If you need help understanding the tax reliefs available for your film or TV production business, get in touch. We'd be happy to help you get the most out of the reliefs.

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