Audio-Visual Expenditure Credit
October 9, 2025

Audio-Visual Expenditure Credit (AVEC) Services

Support your Creative Potential with AVEC Expertise

The Audio-Visual Expenditure Credit (AVEC) is the UK’s latest tax incentive supporting the film, television, and animation industries, replacing the former Film, TV and Animation Tax Reliefs for productions starting principal photography on or after April 2024. At Streets Innovation, we combine sector-specific insight with robust tax and compliance expertise to help production companies fully benefit from this modernised, credit-based scheme.

Whether you produce high-end television dramas, animated features, documentaries, or children’s programming, our AVEC specialists ensure that your qualifying expenditure is accurately identified, substantiated, and rewarded.

What is the AVEC Scheme?

Audio-Visual Expenditure Credit (AVEC) operates as an above-the-line, taxable credit based on qualifying core expenditure incurred on eligible UK productions. It applies to:

  • Film
  • High-end Television
  • Animation
  • Children’s Television

These replace the prior film, high-end television, animation, and children’s TV tax reliefs. The new regime enhances transparency and ensures continued UK competitiveness.

How It Works

Companies can claim a tax credit for up to 80% of total qualifying, core expenditure at a rate of 34% for film, HETV, and animation or 39% for children’s TV. The qualifying production must meet the British cultural test or an official co-production agreement, and at least 10% of the core costs must be deemed UK expenditure. In a push to increase the UK’s competitiveness within the global visual effects (VFX) industry, VFX expenditure incurred on or after January 2025 is also exempt from the 80% cap on core expenditure.

To further incentivise and drive British film production, the Independent Film Tax Credit (IFTC) has been introduced for productions with principal photography starting on or after 1 April 2024. This enhanced AVEC scheme provides a credit rate of 53% on up to 80% of total core expenditure for British films, subject to additional cultural and expenditure conditions.

We help clients to:

  • Identify qualifying expenditure under the legislative framework.
  • Analyse productions to determine UK-qualifying activity
  • Compile compliant claims with supporting documentation and cost schedules
  • Liaise with HMRC and the BFI on certification and claim validation • Integrate AVEC claims into wider tax strategy and forecasting

Our AVEC Services

  • Expert Guidance – Navigate the transition from the legacy Film, TV and Animation Tax Reliefs Tax Reliefs to AVEC with confidence. We provide support on ensuring your production remains compliant with the new credit-based regimes.
  • Eligibility Review – We assess whether your production meets the cultural and locational expenditure thresholds necessary for AVEC qualification and cultural certification.
  • Claim Preparation – Our team prepares robust, evidence-based submissions detailing eligible costs and ensuring alignment with HMRC’s requirements.
  • Claim Compliance – We manage HMRC enquiries and provide detailed justifications to protect your claim.
  • Strategic Advisory – We project financial outcomes by integrating AVEC into your broader tax relief strategy, including potentially complex interactions with R&D or Patent Box regimes.

Why Streets?

At Streets, we bring together creative industry understanding, tax technical expertise, and hands-on compliance support. Our aim is to ensure production companies secure the tax credit they deserve while staying fully compliant.