Animation Expenditure Credit (AVEC) Calculator 2026
Calculate the Audio-Visual Expenditure Credit (AVEC) for UK animation productions. 39% credit on qualifying UK core expenditure from January 2024.
Animation Expenditure Credit (AVEC) Calculator
Audio-Visual Expenditure Credit for animation — 39% from 1 January 2024 (replacing old Animation Tax Relief)
Frequently Asked Questions
What is the Audio-Visual Expenditure Credit (AVEC) for animation?
AVEC replaced the old Animation Tax Relief from 1 January 2024. Animation productions and children's TV programmes can claim a 39% above-the-line credit on UK qualifying core expenditure.
What is the AVEC rate for animation?
Animation productions qualify for a 39% credit — the same as children's TV. Standard film and high-end TV qualify for 34%.
What is the minimum UK spend for animation AVEC?
At least 10% of total core expenditure must be on UK qualifying goods and services (lower than the 25% requirement for theatre/orchestra reliefs).
Is the AVEC credit taxable?
Yes. The gross credit is included in taxable profit. The net economic benefit is approximately 39% × (1 - CT rate). For a 25% CT company, net benefit = 29.25p per £1 of qualifying spend.
What qualifies as core expenditure for animation?
Costs directly involved in the creation of the animation: creative development after a greenlight decision, pre-production, principal production, and post-production. Not marketing, distribution or financing costs.
How is AVEC different from the old Animation Tax Relief?
The old ATR was an enhancement to trading losses/deduction worth effectively 25% of UK spend. AVEC is a direct credit at 39% — significantly more generous and provides cash to profitable companies too.
What counts as a qualifying animation for AVEC?
A programme in which at least 51% of the core expenditure is on animation, intended for broadcast or streaming, and that passes the cultural test (Schedule 1 of the AVEC regulations).
Can an animation production use AVEC and a separate grant?
Yes, but any public subsidy or grant that relates to the same qualifying expenditure may reduce the qualifying amount for AVEC purposes.