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Increased Tax Credit Provides Welcome Relief to U.K. Independent Film Industry
The announcement of the U.K.’s new Independent Film Tax Credit (IFTC) back in March had a near instantaneous impact, at least in the case of one film production.
“Giant,” the biopic of boxer Naseem Hamed and starring Amir El-Masry, was in advanced pre-production when the news landed, with plans to shoot location work in Hamed’s home town of Sheffield and all the interiors — including the essential boxing rings — in Malta. Sets were already being built on the Mediterranean island, which has been courting numerous film productions in recent years thanks to a generous 40% tax rebate initiative.
But then the IFTC was unveiled and the U.K., when it came to producer’s all-important bottom line, was suddenly much more competitive. What had previously been a 20% tax break was now around 32.5% (it was initially billed as 40%, but is actually lower after corporation tax). Given the costs involved in shipping the film overseas, “Giant” didn’t need to pack up its bags.
“As soon as the tax credit came out, we did the analysis and immediately it made more economic sense, straight away, to keep it here,” explains Zygi Kamasa, the head of distributor and producer True Brit Entertainment. “So we pivoted within days of it coming through.”
“Giant” may have been the first, but just six months on from the announcement of the IFTC Kamasa says that it’s contributed enormously to the output of his nascent company — which was only launched in November 2023 with a focus on films for British cinemagoers. Where there was an initial aim to produce three films in its first year, True Brit will soon begin shooting its eighth. And while some — like “Giant” — would have happened regardless of the tax credit, he says “there were movies that were definitely expedited” because of it.
The significant interest and optimism within the British film industry since the IFTC’s announcement, despite not yet being fully implemented, is a far cry from the dark days of 2022. A report commissioned by the British Film Institute (BFI) that year had the key and ironic takeaway that the overall boom in the country’s film and high-end TV sector had led to a corresponding negative impact on the independent sector. It found that the speed and volume of growth strained the sector so much that it couldn’t compete with larger budget international productions on several levels — from accommodating the rising cost of production to securing cast and crew, and ultimately to reaching audiences.
BFI statistics reveal that getting U.K. films budgeted under £15 million ($19.6 million) into production had become increasingly challenging. After plummeting by 31% in 2022, spend on independent U.K. film in 2023 fell a further 11% to just £150 million ($196.9 million).
Now, in 2024, post IFTC announcement, Harriet Finney, BFI deputy CEO and director of corporate and industry affairs, says, “We’ve seen a lot of positivity in the industry. It’s definitely changed the conversation for independent filmmakers in this country.”
The BFI is currently preparing for increased capacity once the statutory instrument and guidance notes are published later this year. Finney explains, “We’re making sure that we’re in the best possible position to deal with what is likely to be a flurry of activity. It feels like there’s a growing sense of confidence around domestic production.”
Simon Williams, managing partner at Ashland Hill Media Finance, reports seeing an uptick in projects considering filming in the U.K. “We’re getting lots of different projects coming to us, asking if they should be shot in the U.K.,” Williams says. He notes that some international producers are exploring the possibility of adapting their scripts to meet U.K. requirements. “The U.K. looks more attractive for film currently, because the tax credit, it’s probably bigger than pretty much anywhere else in the world, aside from maybe Australia. But Australia is far away and it’s costly to take people over there,” Williams said.
However, Williams expresses concerns about potential cost increases. “We don’t want costs to increase by shooting in the U.K., which negates the benefit of the tax credit,” he cautions.
Ashland Hill-backed “The Magic Faraway Tree,” based on Enid Blyton’s beloved book, is currently in production. “The Scurry,” directed by Craig Roberts and starring Ella Purnell, Rhys Ifans and Antonia Thomas, has just finished shooting, which Ashland Hill funded against the increased tax credit. “That film would never have happened if it wasn’t for this increased tax credit. I think the only thing that may deter some lenders from putting money against it [is] if you are entering into a production now, you can’t put a claim in for your tax credit until April next year. Whereas in the current tax credit, you can make interim claims, which from a producer’s perspective, if you have a lender, you can make multiple claims and pay down the loan quicker, rather than doing one big claim in 18 months time,” Williams said.
Alex Ashworth, head of production at Anton, believes the IFTC will make a significant impact, particularly for films in the £5-15 million ($6.5-19.6 million) budget range. “I think it will really help independent film producers where we’ve lost that mid-budget section,” Ashworth says. “There was a long time where that was the U.K. sweet spot, films like ‘The King’s Speech,’ and I feel like the cost of production has gone up so that it’s very hard to make those at that level. Our incentives are good, but they aren’t necessarily comparable to some other territories. So by doing this, you’re offsetting basically the inflation that our production industry has experienced in the last five to seven years. I think it will really help those independent films who are probably struggling to get their finance plans to hit those higher budget levels.”
Ashworth estimates that Anton is currently working on four to five projects with the IFTC in mind for shooting in the next 12 to 18 months.
Producer Alastair Clark, whose recent film “Sister Midnight” premiered at Cannes, also sees the IFTC as a positive development for the industry. “The mood is great,” Clark says. He also points out that while the net benefit is around 32.5% after corporation tax, rather than the initially advertised 40%, it’s still a significant improvement over the previous system.
Clark is already incorporating the IFTC into his project planning. “Certainly, one very solid project right now that we’re raising the finance for. It’s a big part of it,” he says. Clark believes the increased tax credit will reduce the need for riskier private financing in some cases. “Borrowing against the tax credit versus borrowing against an MG (minimum guarantee) or a sales advance, is cheaper, and therefore helps finance plan a budget,” Clark said.
While the industry awaits full implementation of the IFTC, the initial response suggests it could play a crucial role in bolstering the U.K.’s independent film sector and positioning it far more attractively on the global stage. For Phil Hunt at Head Gear Films, it’s certainly a very positive move after the “nightmare of Brexit,” which he claims “ripped the heart out of indie co-productions.” The veteran producer says he’s already noticed that producers in North America are “definitely now looking to put more productions in the U.K. and, when talking to folk in LA, there seems to be a drain away from the U.S.”
But that’s not to say that execs are seeing IFTC at the perfect solution, of course. As with most newly-launched financial incentives, there are hopes that it will be tweaked and changed along the way, especially with the U.K. under a new Labour government that has, traditionally, been more supportive of the arts. An ideal situation for many is that the 40% rebate actually does mean a full 40% for producers.
“I’d love the government to look at that,” says Kamasa. “I think it should be the full 40%, because then you’d be truly competitive with places like Malta and Italy.”
HOW THE IFTC WORKS
The IFTC is calculated on “core expenditure” related to production activities, with qualifying companies able to claim up to 80% of their core expenditure or the amount of U.K. core expenditure, whichever is less. For a £15 million ($19.6 million) budget film, this could mean a maximum credit of £6.36 million before tax.
After corporation tax, which varies between 19% and 25%, the actual cash benefit could range from £4.77 million ($6.26 million) to £5.15 million ($6.76 million). This represents a substantial increase from the previous Audio-Visual Expenditure Credit (AVEC) system, which would have provided between £3.06 million ($4.01 million) and £3.30 million ($4.33 million) for the same budget.
The BFI will assess film budgets to ensure they meet the IFTC criteria. Productions that exceed the £15 million budget cap during filming will have the option to continue with the IFTC or switch to the AVEC system.
Claims for the IFTC can be submitted to HMRC (His Majesty’s Revenue & Customs) from April 1, 2025, for expenditure incurred from April 1, 2024, provided principal photography began after April 1, 2024.
-U43648517271Shc-1440x752@IlSole24Ore-Web.jpg?r=1170x507&ssl=1 "War breaking news. Trump postpones decision: nothing after two hours in Situation Room")
Iran, Trump shares draft agreement with Israel and other allies
US President Donald Trump has circulated the draft peace agreement for the war with Iran among allies, including Israel, while attempts are underway to prevent new ceasefire violations from escalating and derailing any agreement. Meanwhile, in an effort to accelerate negotiations, Pakistan’s Foreign Minister, Mohammad Ishaq Dar, will be in Washington today to meet with his US counterpart, Marco Rubio.
Yesterday, Tehran targeted a US air base in Kuwait after Washington struck what it called an Iranian drone operation near the Strait of Hormuz, highlighting the fragility of the situation as both negotiating parties refuse to give in on the final points of disagreement. On Wednesday, Trump’s cabinet was scheduled to discuss the deal, but Axios – which reported on the terms of the deal reached – reported that the US president needed a few more days to reflect on the eventual go-ahead.
Direct military negotiations between Israel and Lebanon start today at the Pentagon
The first direct meeting between Lebanese and Israeli military delegations opens today at the Pentagon as part of the negotiations promoted by the United States after the truce that came into effect, at least on paper, in mid-April. The talks take place while Israel intensifies raids and bombardments in Lebanon, including the southern suburbs of Beirut. The Jewish state has issued several forced displacement orders to Israeli civilians in Nabatiye and Tyre, the two main Lebanese cities in the south of the country. Beirut’s armed forces come to the table with a position defined by President Joseph Aoun, who is considered close to the United States: a complete ceasefire, an end to Israeli operations, withdrawal from the occupied areas in the south, and increased army deployment along the border. Beirut also demands the release of Lebanese prisoners, the return of displaced persons, and international support for reconstruction. The meeting follows two previous negotiating sessions held in Washington on 14 and 15 May, which led to the extension of the ‘truce’ for 45 days. The United States, engaged in large-scale negotiations with Hezbollah supporter Iran, is aiming to strengthen direct military coordination between the two sides. In this sense, a new political round at the State Department is scheduled for 2 and 3 June. However, the most delicate knot remains on the table: Israel claims the right to conduct preventive operations against threats considered imminent, a formula contested by Beirut and at the centre of internal Lebanese tensions. At the same time, Washington continues to exert pressure on the Hezbollah disarmament dossier, while the Shiite movement reiterates its rejection of direct negotiations and continues its operations against the Israeli occupation forces in southern Lebanon. According to data gathered from Lebanese sources, more than 4,500 Israeli violations, more than 5,500 homes destroyed, and direct or indirect Israeli military control over more than 65 locations in South Lebanon have been recorded since the start of the mid-April ‘truce’.
Emir Qatar hears Trump, ‘priority to political and diplomatic solutions’
Qatar’s Emir Tamim bin Hamad Al Thani has asked US President Donald Trump to “prioritise political and diplomatic solutions” in the Middle East, in the context of negotiations between Washington and Tehran for a possible agreement. The request came during a phone call between the two leaders, during which international efforts to reduce tensions in the region were addressed. This was reported by the Qatari state agency Qna. Al Thani emphasised ‘the need to prioritise political and diplomatic solutions, as well as dialogue between all parties, to consolidate regional security and stability and avoid further tensions and escalation’. Washington meanwhile confirmed an agreement in principle with Iran to extend the 60-day truce and guarantee shipping in the Strait of Hormuz, but the understanding remains pending Trump’s approval and has not yet been confirmed by Tehran.
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Israeli and Lebanese military delegations opened Pentagon-mediated talks Friday morning in Washington, launching a new U.S.-brokered security coordination track aimed at preventing renewed escalation along the Israel–Lebanon border and shoring up a fragile ceasefire reached in mid-April.
A State Department official told Fox News Digital that, “As we have continuously stated, the only path to lasting peace is through direct negotiations between the two sovereign governments.”
The discussions mark a shift from diplomatic negotiations into direct military coordination, with talks expected to focus on ceasefire enforcement, border stability, Israeli withdrawal from parts of southern Lebanon and the role of the Lebanese Armed Forces in containing Hezbollah.
ISRAEL MOVES TOWARDS CEASEFIRE DEAL WITH HEZBOLLAH: REPORTS
Michael Needham, counselor for the U.S. Department of State, U.S. Ambassador to the United Nations Mike Waltz, Secretary of State Marco Rubio, U.S. Ambassador to Lebanon Michel Issa, Lebanese Ambassador to the U.S. Nada Hamadeh Moawad, and Israeli Ambassador to the U.S. Yechiel Leiter pose for a photo before a meeting at the State Department in Washington, D.C., on April 14, 2026. (Jacquelyn Martin/AP Photo)
The talks come weeks after a U.S.-brokered ceasefire first reached during the broader regional conflict tied to the U.S.–Iran war. While large-scale fighting has eased, Israeli forces continue operating inside parts of southern Lebanon and Hezbollah maintains drone and rocket capabilities, keeping tensions high along the border.
The ceasefire was extended on May 15 for another 45 days, creating pressure on both sides to show progress before the current arrangement expires.
But analysts say the central question overshadowing the talks is whether Lebanon can realistically curb Hezbollah’s military power without risking internal collapse.
“This will be the first meeting between representatives of the militaries since the start of the negotiation process between Lebanon and Israel,” Ahmed Sharawi, a research analyst at the Foundation for Defense of Democracies think tank, told Fox News Digital.
Representing Lebanon in the talks is Lebanese Armed Forces (LAF) commander Gen. Rodolphe Haykal, who previously served as commander of the Lebanese Armed Forces in southern Lebanon, an area where Hezbollah maintains a strong presence. Hezbollah is the Iran-backed Lebanese terrorist organization designated by the United States as a foreign terrorist organization.
“What we should expect is talks regarding de-confliction and what the expectations are for the LAF in terms of the broader disarmament plan against Hezbollah’s weapons,” he said.
Sharawi said the chances of a broader breakthrough remain limited so long as Hezbollah remains heavily armed and politically entrenched inside Lebanon.
“The biggest obstacle here is that the Lebanese state is yet to present a feasible plan to disarm Hezbollah,” he said.
LAWMAKERS QUESTION WHETHER US MOVING FAST ENOUGH TO CAPITALIZE ON HEZBOLLAH’S WEAKENED STATE
But analysts say the central question overshadowing the talks is whether Lebanon can realistically curb Hezbollah’s military power without risking internal collapse. (Ibrahim AMRO / AFP via Getty Images)
He pointed to the terms of the November 2024 ceasefire agreement, which placed responsibility for disarming Hezbollah on the Lebanese state.
“We are yet to see the confiscation of one single bullet from Hezbollah,” Sharawi said.
He also warned that Hezbollah’s deep support among Lebanon’s Shiite population complicates any attempt to move toward normalization with Israel.
“There’s a fear of a civil war,” he said. “That also accounts for the Lebanese state’s unwillingness to disarm Hezbollah.”
The talks opened as Prime Minister Benjamin Netanyahu signaled Israel intends to maintain military pressure on Hezbollah despite the negotiations.
Sharawi argued the Trump administration nevertheless appears determined to push the process forward as part of a broader effort to weaken Iranian influence in the region.
“The reason behind these meetings is that President Trump is really trying to push for a peace agreement between Israel and Lebanon,” he said. “Peace between these two countries could really undermine Hezbollah and its influence in Lebanon.”
WALTZ SAYS TRUMP HAS CREATED ‘BEST CHANCE IN OUR LIFETIME’ TO BREAK HEZBOLLAH’S GRIP ON LEBANON
Churches in the southern Lebanese town of Rmeish remained standing throughout the conflict, as residents say the community resisted Hezbollah attempts to launch rockets from the area. (Jusoor News)
Israeli analysts similarly described the talks less as a breakthrough and more as a strategic signal aimed at Hezbollah.
“The war between us and Hezbollah is continuing,” Yossi Kuperwasser, senior project manager at the Jerusalem Institute for Strategy and Security and former head of the Research Division of Israeli Military Intelligence, told Fox News Digital.
“There is no doubt the Lebanese government does not have a monopoly on the use of force in Lebanon,” he said.
‘OVERBLOWN’ REPORTS ON ISRAEL–LEBANON NORMALIZATION RISK HINDERING BORDER TALKS BEFORE THEY BEGIN: OFFICIAL
IDF troops discovered a Hezbollah weapons cache near a UNIFIL post in southern Lebanon in 2024. (IDF Spokesman’s Unit)
Kuperwasser said expectations for an immediate diplomatic breakthrough should remain low, but argued the talks themselves send an important political message.
“The purpose of these talks is first and foremost to send a message to Hezbollah and also to the Americans,” he said. “Both sides are prepared to sit together against Hezbollah and signal that they are moving, even if slowly, toward normalization between Israel and Lebanon.”
He argued Hezbollah has been weakened politically and militarily by the ongoing conflict and by growing frustration among Lebanese civilians displaced by the fighting.
“For years Hezbollah portrayed itself as the defender of Lebanon,” Kuperwasser said. “Now many Lebanese see Hezbollah as responsible for the suffering Lebanon is experiencing.”
Kuperwasser added that while Israel supports strengthening the Lebanese army, Beirut fears direct confrontation with Hezbollah could ignite another civil war.
“The Lebanese government fears military action against Hezbollah would lead to civil war,” he said. “That fear shapes everything.”
The talks also come amid mounting domestic pressure inside Israel, where critics of Netanyahu have accused the government of pursuing containment rather than decisive military victory against Hezbollah.
Speaking Friday during a visit to Israel’s northern front, Netanyahu said Israeli forces had crossed the Litani River and were operating across multiple parts of Lebanon.
“We are operating in Beirut, in the Bekaa Valley, across the entire front and striking Hezbollah hard,” Netanyahu said.
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A woman holds her dog as she walks past burned cars a day after an Israeli airstrike in Beirut, Lebanon, on April 9, 2026. (Emilio Morenatti/AP)
Meanwhile, Lebanon’s leadership is attempting to balance growing American pressure with fears of internal instability and renewed sectarian conflict.
Neither the Israeli Embassy in Washington nor the Lebanese Embassy in Washington immediately responded to requests for comment. The Pentagon did not have anything to add when asked to comment.
The United Nations has confirmed it placed Israel on a blacklist of countries suspected of committing sexual violence against civilians, and pushed back on accusations made by Israel regarding its inclusion.
The list, part of a “conflict-related sexual violence” report released on Friday, prompted Israel’s foreign ministry to say it would sever all ties with UN Secretary-General Antonio Guterres.
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Last August, the UN cited “credible information” regarding sexual violence committed by Israeli security forces against Palestinian detainees in prisons and other detention centres, and said UN inspectors had been denied access to the facilities.
“We invited the representative of the UN to come to Israel to check those ridiculous allegations. They chose not to come,” Israel’s UN Ambassador Danny Danon posted on X on Thursday.
“I never received an iota of information on measures taken by the government of Israel on implementation of the preventive measures,” Pramila Patten, the UN official who authored the report, told reporters on Friday at a briefing at the UN’s New York headquarters.
“I have made several requests in writing, and sometimes during meetings, for details about initial steps, including the issuance of orders of command information on access and information on accountability measures, but I did not get any response on the substantive aspect of the preventive measures,” she added.
Patten did confirm that there had been an invitation from Israel, but referred also to disagreements about the scope of the visit and related issues of access and cooperation, and said it ultimately had to be suspended due to Israel’s war on Gaza.
‘Multiple incidents’ in Gaza and occupied West Bank
This year’s report said that in 2025 “the United Nations verified multiple incidents of conflict-related sexual violence, including as a form of torture, inflicted against 14 men, seven women, nine boys and one girl from the Gaza Strip and the [occupied] West Bank.”
It said 13 of the attacks happened last year, and 18 in 2023 and 2024.
“Violations consisted of rape, including with objects, gang rape, attempted rape, physical violence to the genitals, instances of targeted shooting of the genitals, touching of breasts and genitals, strip and cavity searches conducted without apparent security justification, forced nudity and threats of rape,” it said.
“Rape and gang rape, in some cases repeated, were perpetrated against nine victims, the majority Palestinians from Gaza,” it said, adding that perpetrators included Israeli armed and security forces. The assaults occurred primarily during detention and interrogation in several sites, including military camps, at checkpoints and during Israeli military operations in the Occupied Palestinian Territory.
It said survivors included journalists and human rights defenders and in some cases, the violations were filmed or photographed, including one case of rape.
The report added that sexual violence against female detainees included mostly threats of rape, forced nudity, unwanted touching, and humiliating or degrading strip searches without justification, while men and boys were targeted with rape, attempted rape and violence to the genitals.
This resulted in five male victims suffering severe rectal bleeding or swelling for multiple days or weeks, it added.
Russia added to list alongside Israel
The latest UN report also contains harrowing descriptions of abuses at the hands of Russia’s military after “findings of continued patterns of sexual violence documented”.
The UN human rights monitoring mission in Ukraine had verified 310 cases of conflict-related sexual violence perpetrated by Russian armed and security forces.
It said the cases, including rape, gang rape, genital mutilation, electric shocks and beatings to the genitals, injured 280 men, 26 women and four girls.
The report’s annex lists 77 parties deemed responsible for patterns of conflict-related sexual violence, including 62 non-state actors.
New additions include three non-state armed groups operating in the Democratic Republic of the Congo.
Nearly 10,000 cases of conflict-related sexual violence were recorded worldwide last year – more than double the previous year’s figure, the report said.
Being added to the list does not automatically carry specific punitive measures such as sanctions, although public naming and shaming can cause significant reputational damage for the states involved, and those repeatedly listed are barred from UN peacekeeping operations.
Patten said the increase in cases of conflict-related sexual violence verified by the United Nations marks a very disturbing trend that was still only the “very tip of the iceberg”.
“This number can be attributed to the fact that we are going through a time when we have a record number of extremely violent conflicts, and the fact that perpetrators are feeling emboldened by a context of impunity, where this crime is almost cost-free,” she said.
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