Shooting a Feature in ScotlandUK tax relief, Screen Scotland funding and line producer costs

00Contents

1. The short version
2. UK tax relief: AVEC and IFTC
3. BFI certification and the cultural test
4. How and when the credit is paid
5. Screen Scotland funding
6. Crew, studios and regions
7. Locations and permissions
8. What a line producer does, and what affects the fee
9. UK feature budget checklist
10. Next steps

01The short version

• Films made by a UK production company can claim the Audio-Visual Expenditure Credit (AVEC) at 34% on qualifying expenditure, which works out at about 25.5% net after Corporation Tax (HMRC, British Film Commission).
• Independent films with a budget of £15 million or less can instead claim the Independent Film Tax Credit (IFTC) at 53%, about 39.75% net, if they have a UK writer or director or are an official UK co-production (HM Treasury and HMRC policy note).
• Relief is calculated on the lower of UK core expenditure or 80% of total core expenditure, and at least 10% of core expenditure must be UK spend (HMRC).
• The film must be certified British by the BFI, usually by passing the cultural test (18 of 35 points) or as an official co-production (BFI).
• Screen Scotland offers production funding for films with Scotland-based talent, and a separate Production Growth Fund for larger incoming productions with at least £2 million of Scottish spend (Screen Scotland).
• Glasgow and Edinburgh are the main crew bases, with studio space in and around both cities, and free location help from Screen Scotland and the regional film offices.

02UK tax relief: AVEC and IFTC

Since 2024 the UK's film tax relief has been delivered as an expenditure credit, the Audio-Visual Expenditure Credit, claimed through the production company's Corporation Tax return. The older Film Tax Relief remains only for productions that began principal photography before 1 April 2025, and only up to 31 March 2027 (British Film Commission).

Audio-Visual Expenditure Credit (AVEC)

• Rate: 34% for live-action films; 39% for animated films (HMRC).
• Net value: the credit is itself taxed at the main rate of Corporation Tax, so the British Film Commission gives net rates of 25.5% for live-action features and 29.25% for animated features (British Film Commission).
• The 80% cap: qualifying expenditure is the lower of 80% of total core expenditure or UK core expenditure. Even a film made entirely in the UK claims on 80% of its core costs (HMRC).
• Minimum UK spend: at least 10% of core expenditure must relate to activity in the UK (HMRC).
• Visual effects: for films at the 34% rate, UK visual effects costs incurred from 1 January 2025 can be claimed at 39% and are exempt from the 80% cap. This can't be combined with the IFTC (HMRC, HM Treasury).
• Intended for theatrical release: films must be intended for theatrical release to qualify as films (HMRC).

Independent Film Tax Credit (IFTC)

The IFTC is an enhanced rate of AVEC for lower-budget independent films. The BFI and the British Film Commission also call it Enhanced AVEC.

• Rate: 53% on qualifying expenditure, instead of 34% (HM Treasury and HMRC policy note). The British Film Commission gives a net rate of 39.75% (British Film Commission).
• Budget: aimed at films with core expenditure of £15 million or less, excluding marketing and distribution. The credit is capped at the amount a £15 million film could claim, £6.36 million before tax. A film that grows past £15 million can keep the 53% rate up to that cap or switch to standard AVEC (policy note). The BFI and British Film Commission note that films with core expenditure up to £23.5 million can still claim on the first £15 million, the point at which standard AVEC becomes the better option (BFI, British Film Commission).
• Creative connection: the film needs a UK writer or a UK director (national or resident), or must be an official UK co-production (British Film Commission).
• Dates: applies to expenditure from 1 April 2024 on films that started principal photography on or after that date, with claims from 1 April 2025 (HMRC).

The production company

The claim is made by the company responsible for the production, which must be within the UK Corporation Tax net (British Film Commission). HMRC also expects that company to be responsible for pre-production, principal photography, post-production and delivery, to be actively involved in decision-making, and to contract and pay for rights, goods and services directly (HMRC). In practice, producers from outside the UK usually set up a UK production company for the film or partner with a UK producer.

03BFI certification and the cultural test

To claim AVEC or the IFTC, the film must be certified as British by the BFI on behalf of the government, either by passing the cultural test or by qualifying as an official co-production under one of the UK's treaties (HMRC).

• The cultural test has 35 points across four sections: cultural content (up to 18), cultural contribution (up to 4), cultural hubs (up to 5) and cultural practitioners (up to 8). A film needs at least 18 points to pass (BFI).
• Interim certification can be applied for before or during production, so the credit can be claimed while the film is still being made. Final certification follows once the film is complete (BFI).
• For the IFTC, the BFI application also needs evidence of the budget condition and the creative connection requirement (BFI).
• Director ID verification for company directors became mandatory on BFI applications from 1 June 2026 (BFI).

It's worth scoring the cultural test early, ideally before the budget is locked, because choices about cast, crew, locations and post can move the score.

04How and when the credit is paid

• The claim goes in with the production company's Company Tax Return, along with an additional information form and the BFI certificate (policy note). Statutory accounts are also required (British Film Commission).
• The credit is taxed at the main rate of Corporation Tax, set against the company's tax liabilities or surrendered to group companies, and the remainder is paid out as a payable credit (HMRC).
• Interim claims are possible, for example at the end of principal photography, with an interim BFI certificate. The final certificate then has to follow once the film is complete (British Film Commission, HMRC).
• The British Film Commission suggests the BFI takes about six to eight weeks on straightforward certification applications, and HMRC aims to pay claims within eight weeks (British Film Commission).

Because the money arrives after the costs are spent, many productions borrow against the expected credit. If you do, put the interest and fees in the budget, and allow for the cost of preparing the production accounts the claim depends on.

05Screen Scotland funding

Screen Scotland, part of Creative Scotland, runs several funds. The two most relevant to an incoming feature are:

Film Development and Production Fund

• For Scotland-based producers, or producers based elsewhere when the project has Scotland-based writing or directing talent (Screen Scotland guidance, updated November 2025).
• Production awards are likely to be between £100,000 and £500,000, with more considered in exceptional cases. Production funding is an equity investment, recouped behind debt and mezzanine finance (guidance).
• Applications are rolling, and production applications should go in at least 12 weeks before pre-production. Decisions take up to 10 weeks. The film must qualify as British through the cultural test or a co-production treaty (guidance).

Production Growth Fund

• Aimed at larger film and television productions shooting in Scotland, including projects whose key talent is from outside Scotland (Screen Scotland).
• Requires a UK-registered production company, a project at an advanced stage of financing, and a minimum Scottish spend of £2 million. Applications are rolling until each year's budget is allocated, and must go in at least 12 weeks before the first day of principal photography in Scotland (Screen Scotland).
• A related Project Post Fund supports post-production and visual effects work done in Scotland (Screen Scotland).

Screen Scotland's April 2026 production brochure also lists a Recce Fund that helps with location scouting and budget conversions (Screen Scotland brochure). Fund availability changes through the year, so it's best to speak to Screen Scotland before building any award into a finance plan.

06Crew, studios and regions

Crew. In my experience most of Scotland's film crew is based in and around Glasgow and Edinburgh, which are about an hour apart. Screen Scotland points productions to Film Bang, the directory of Scottish crew, facilities and production companies, and to Screen Facilities Scotland for facilities and service companies (Screen Scotland).

Studios. Screen Scotland's studio listing includes (Screen Scotland, brochure):

• FirstStage Studios, Leith, Edinburgh
• Kelvin Hall (BBC Studioworks), Glasgow
• Wardpark Film and Television Studios, Cumbernauld
• The Pyramids, Bathgate
• BBC Scotland Dumbarton Studios and Nightsky Studios also appear in the April 2026 brochure

Use of any space is arranged directly with its owner.

Regions. Shooting within reach of Glasgow or Edinburgh lets most crew travel daily. The Highlands and islands give you some of the country's most striking landscapes, but usually mean travelling crew, accommodation and per diems, longer company moves and more weather cover in the schedule. I line produced Row in Caithness, on the far north coast, so I've budgeted for exactly this.

07Locations and permissions

• Screen Scotland's Screen Commission offers a free, confidential service for incoming productions, covering locations, incentives guidance, crew and studio information. It works with the regional film offices (Screen Scotland, brochure). It also runs a locations database.
• Glasgow Film Office is the city's film office and offers a free service to all productions, including location advice and liaison with council departments under the city's Film Charter (Glasgow City Council).
• Film Edinburgh covers Edinburgh, East Lothian, Midlothian and the Scottish Borders. It says you generally don't need a permit to film on the street if you don't cause an obstruction, but parks, beaches and cemeteries need permission, and controlling a street or using heavy equipment needs the appropriate order or permit (Film Edinburgh).
• Heritage and roads: Historic Environment Scotland and the National Trust for Scotland handle filming at their properties, and filming on the trunk road network needs permission from Transport Scotland (Screen Scotland brochure).

08What a line producer does, and what affects the fee

A line producer turns the script into a plan that can be shot for the money available, then runs that plan. On a UK feature that usually means building the budget and schedule, hiring the production team and heads of department, setting up the production company's systems with the production accountant, managing cost reports and cash flow, and supporting the tax credit and certification process through to delivery.

What a line producer charges depends mainly on:

• the size of the budget and the length of prep, shoot and post
• whether they're engaged for prep and shoot only, or through post-production and delivery
• complexity: stunts, water, night work, children, animals, visual effects, multiple countries
• how much of the tax credit, certification and co-production work they're expected to handle
• location: remote shoots involve more travel and logistics
• whether they also take a producer credit or a share of the producer's fee

For crew rates more broadly, Bectu publishes recommended rate cards by department (Bectu), and in June 2026 Pact issued recommended terms for engaging crew on UK films budgeted between £1 million and £10 million (Pact).

10Next steps

If you'd like a UK budget and tax relief estimate for your project, see my UK budget, schedule and tax relief package. For my line producing work in Scotland and the UK, including Row, Sukkwan Island and Faith, see Production in Glasgow.