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Film: Tax Allowances

Asked by Dr Danny ChambersLiberal DemocratTreasuryTabled Answered 4 March 2026UIN 115682

The question

To ask the Chancellor of the Exchequer, whether a film can qualify for the AVEC and IFTC tax credits if all other eligible criteria is met but all the images and audio were created by AI.

Answered by Dan Tomlinson

Details on the eligibility criteria for the Audio Visual Expenditure Credit (AVEC) and Independent Film Tax Credit (IFTC) can be found here: https://www.gov.uk/guidance/claim-audio-visual-expenditure-credits-for-corporation-tax.

The Government continues to monitor the use of AI in film production and keeps the tax system under constant review.

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