This registry applies to British Film status under the Cultural Test and is required for film production companies applying for the Enhanced Audio-Visual Expenditure Credit (AVEC), also known as the UK Independent Film Tax Credit (IFTC).

Following the change, an accountant’s report must be administered by a registered auditor for both interim and final certification stages for films under IFTC. This marks a shift from previous practice, as Jai Vora explains, where a qualified accountant’s report was sufficient.

Why the Change?

The Enhanced AVEC (IFTC) is designed to support independent UK film productions with more generous reliefs. However, with  increased funding comes increased scrutiny, and the BFI’s updated criteria reflect a broader push for increased transparency and assurance on how public funds are allocated and claimed.

By requiring a registered auditor to sign the accountant’s report, the BFI is ensuring:

• Greater independence in the verification process
• Higher assurance on the accuracy of financial data submitted
• Alignment with statutory audit standards, particularly where points C and D of the Cultural Test are claimed

What Does This Mean for Productions?

If you’re applying for the Enhanced AVEC (IFTC), you’ll need to factor in the cost and timeline of engaging a registered auditor. This applies whether you’re submitting an interim application or going straight to final certification.

It’s worth noting that while the interim application is optional, the final certification is not, and the auditor’s report will be mandatory at that stage. Productions should, therefore, plan ahead to avoid delays, especially given the BFI’s current turnaround time of six to eight weeks.

How SRLV Can Help

At SRLV, we understand the creative and commercial pressures facing independent film producers. Our specialist film team, led by Partner Jai Vora, offers tailored support throughout the certification process – from Cultural Test applications to financial reporting and audit.

If you’re preparing to submit under the Enhanced AVEC (IFTC), we can help you navigate the new requirements with confidence and clarity.

For more information on any of the points raised in this article, or for advice on IFTC matters, please email jaivin.vora@srlv.co.uk.

This material is published for the information of clients and contacts. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or SRLV LLP.