From 17 February 2025, Local Authorities can begin implementing local schemes and awarding a 40% reduction in business rates bills to film studios.

The Film Studio Business Rates Relief was announced in last year’s Spring Budget, alongside a raft of measures intended to boost the country’s creative sectors, including the new Independent Film Tax Credit, the applications for which open on 1 April 2025 (see here for more information). Following the change of government, yet more measures have been introduced, including the announcement in October’s Budget of a new Enhanced VFX Audio-Visual Expenditure Credit (about which see here).

The Film Studio Business Rates Relief will be available on properties valued by the Valuation Office Agency as film studios and will be available for eligible studios in England until 2034 (and, where applicable, backdated to 1 April 2024).

The announcement from the Government confirms that the 40% reduction is inclusive of Transitional Relief such that the value of any Transitional Relief a studio receives will be deducted from the value of the film studio relief. Furthermore, studios will still be eligible for Improvement Relief in addition to the film studio relief.

Film Studios will not need to apply for the relief themselves. Instead, Local Authorities will award it to eligible properties. However, if in doubt, film studios are advised to contact their local authority.

Commenting on the announcement, Adrian Wootton, Chief Executive of the British Film Commission, said, “the British film and TV industry is a creative and economic powerhouse, and our film studios are a vital contributor to this success. Today’s confirmation of the Business Rates Relief for Film Studios in England is testament to Government’s recognition of this fact. The BFC is pleased that Government listened to the sector’s concerns and we are proud to have supported the development of this landmark intervention. We will continue to work with Government and stakeholders to secure the best possible long term solution for all parties”.

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