Understanding Regional Tax Incentives with Film and TV Industry Accountants
Choosing the correct filming location can make or break your production budget. Beyond scenery and logistics, tax incentives now play a crucial role in where producers decide to shoot. These incentives often mean the difference between a project staying on paper or reaching the big screen. Skilled Film and TV industry accountants help production teams navigate these regional benefits efficiently.
Whether you’re producing an independent short or an international feature, tax reliefs offer real savings. The UK, for instance, has become a global magnet for film and television due to its robust incentive schemes. But each region has its own rules, eligibility criteria, and financial structures — which can get confusing without expert support.
That’s where specialist accountants step in. At JungleTax, we help creative producers identify regional advantages, maximise claims, and stay compliant with HMRC’s requirements.
Why Tax Incentives Matter in Film and TV Production
Producing film and TV content involves a substantial financial investment. From casting and location hire to post-production and marketing, costs escalate quickly. Tax incentives lighten this financial load by allowing producers to reclaim a portion of their qualifying spend.
Governments offer these incentives to attract investment in production, create jobs, and promote their regions internationally. Film and TV industry accountants ensure production companies capture these opportunities without missteps or missed claims.
For example, a production shooting in Wales can claim different benefits than one in London — even under the same national framework. Understanding these distinctions early in planning allows you to allocate budgets strategically and reduce risk.
UK-Wide Tax Incentives for Film and TV Productions
The UK’s creative sector tax reliefs are among the most generous globally. They cover a range of entertainment formats, including film, high-end television, animation, and video games.
The film production tax relief (FPTR) lets eligible UK productions claim up to 25% of qualifying expenditure. Qualifying costs include UK labour, visual effects, and certain overseas spending, as long as the project passes the British Film Institute’s cultural test.
Similarly, creative industry tax credits such as the High-End Television Tax Relief (HETV) and Animation Tax Relief (ATR) support long-form TV and animation projects. JungleTax often helps production houses structure their accounting systems to separate eligible costs — ensuring claims are accurate and HMRC-ready.
Example:
A Netflix series filmed partly in Manchester qualified for the HETV relief because its episodes exceeded the minimum £1 million-per-hour threshold. With our guidance, the producers reclaimed 20% of their qualifying UK expenditure and reinvested it in post-production upgrades.
Regional Film Incentives Across the UK
While national tax reliefs apply countrywide, regional schemes provide additional financial and logistical benefits. Let’s explore how Film and TV industry accountants optimise funding based on region.
England
England offers extensive production infrastructure and access to the British Film Commission’s network. Local funding agencies, such as Creative England, provide location-specific grants and crew support. Cities like Manchester and Bristol attract productions because their facilities are more cost-effective than those in London.
Scotland
Scotland’s rugged landscapes and strong government backing have made it a central hub for filming. Screen Scotland offers development and production funds, often combined with national tax reliefs. Productions such as Outlander and Avengers: Endgame benefited from these incentives while employing local crews.
Wales
Wales boasts a mix of modern studios and scenic locations, supported by Creative Wales grants. Productions filmed here — including His Dark Materials — receive local funding alongside national reliefs. JungleTax assists Welsh-based productions with combined FPTR and regional scheme claims.
Northern Ireland
Home to Game of Thrones, Northern Ireland’s funding through Northern Ireland Screen includes both direct grants and co-financing support. Accountants help producers structure agreements that comply with local expenditure rules, ensuring maximum returns.
Each region also supports its own cultural or language-based productions, further diversifying eligibility.
Navigating International Co-Productions
Modern productions often cross borders — combining UK talent with international financing. Co-productions bring opportunities but also complex financial structures. Specialist Film and TV industry accountants manage these intricacies by identifying which jurisdiction offers the best return.
For example, a Canadian co-production can benefit from both nations’ tax incentives if it meets cultural test criteria. JungleTax regularly assists with dual-claim coordination to ensure no relief is lost to double-counting or misreporting.
We also guide producers through currency management, international payroll compliance, and VAT recovery for overseas expenses.
Timing Is Everything: Planning Tax Incentives Early
Tax incentives deliver the most value when planned from the start. Many production companies wait until post-production to consider reliefs — but by then, opportunities may be lost.
Our Film and TV industry accountants at JungleTax work with clients during pre-production to align spending with incentive rules. This includes budgeting, contractor classification, and expense documentation.
For instance, pre-qualifying local vendors or crew can significantly increase your claimable expenditure. Similarly, maintaining detailed cost segregation — separating production and marketing costs — prevents disqualification during HMRC audits.
Case Study: Saving £500,000 Through Smart Planning
A UK-based film company initially budgeted for shooting across London and Eastern Europe. JungleTax identified that by moving select scenes to Northern Ireland, they could access an extra 5% in regional funding.
We redesigned their financial plan, tracked qualifying spend in real time, and managed their film production tax relief claim. As a result, they saved £500,000 in taxes and improved cash flow by 20% during post-production.
This example demonstrates the financial advantage of early engagement with creative industry tax specialists.
How Film and TV Industry Accountants Support Producers
Budget Structuring and Forecasting
Before filming begins, accountants create budgets that reflect both creative vision and fiscal efficiency. This includes factoring in tax credits and funding availability by region.
Claim Preparation and Submission
Productions must submit precise documentation to HMRC, including expenditure statements and cultural test certification. JungleTax manages this end-to-end, ensuring compliance and timely refunds.
Cash Flow and VAT Management
Cash flow can make or break a production. We help studios manage VAT recovery, supplier payments, and credit terms — ensuring liquidity during filming.
Post-Production Support
After the wrap, our team conducts final reconciliations to confirm all claimable spend is correctly accounted for. We also advise on reinvesting tax refunds into future projects or technology upgrades.
Future Trends in Regional Tax Incentives
The UK government continues to expand support for the creative industries. New reforms under the Audio-Visual Expenditure Credit (AVEC) aim to simplify relief claims and increase rebate rates for qualifying productions.
Additionally, regional partnerships with international studios are boosting competition among UK regions to attract global productions. This means even greater opportunities for producers who plan strategically.
At JungleTax, we keep clients ahead of these developments by constantly reviewing new relief structures and policy updates.
Partner with Experts Who Understand Film Finance
Tax incentives can transform a project’s financial outlook — but only if managed correctly. JungleTax provides comprehensive accounting and advisory support for filmmakers, TV producers, and creative studios across the UK.
Our Film and TV industry accountants combine technical tax knowledge with real-world production experience. We ensure your projects qualify, your claims succeed, and your finances stay healthy from pre-production through release.
For expert help with your taxes, contact JungleTax today at hello@jungletax.co.uk or call 0333 880 7974.
FAQS
It’s a government incentive allowing film producers to claim up to 25% of qualifying UK expenditure, provided the project passes the BFI cultural test.
Yes. Many productions use both national and regional incentives, such as grants from Creative Wales or Screen Scotland, alongside HMRC film tax relief.
High-end TV shows can claim relief under the HETV scheme if their per-hour cost exceeds £1 million and they meet cultural test criteria.
JungleTax assists productions in identifying qualifying expenditure, structuring finances, and preparing HMRC-compliant submissions for maximum recovery.
Each region has unique advantages. Scotland and Northern Ireland are firm due to combined national and local funding, while Wales provides excellent crew support.