ICAEW.com works better with JavaScript enabled.

Spring Budget 2024: measures for business

Author: ICAEW Insights

Published: 06 Mar 2024

As promised in the Autumn Statement, the Chancellor used the Spring Budget 2024 to announce a suite of tax relief changes to incentivise and support growth in the UK’s creative sector.

Enhanced tax credit for British films

The government promised a new enhanced audio-visual expenditure credit that will apply to films with a budget of less than £15m and that meet the British film institute test. Qualifying film production expenditure will attract a tax credit of 53%. Productions can make claims from 1 April 2025, in respect of expenditure incurred from 1 April 2024 onwards, provided that films started principal photography from 1 April 2024.

Extra tax relief for visual effects 

The Chancellor also confirmed that the tax credit rate for visual effects costs in film and high-end TV will be increased by 5% to 39% from April 2025, and the 80% cap will be removed for qualifying expenditure for visual effects costs. The government will consult further on the implementation of this measure. However, it is not yet clear on what date this will be enacted.

Tax reliefs for theatres, orchestras and exhibitions

During the COVID pandemic the government temporarily increased the headline rates of these reliefs to support businesses. From 1 April 2025 however, these rates will be made permanent, set at 40% for non-touring productions and 45% for touring productions and all orchestra productions. The sunset clause for museums and galleries exhibitions tax relief will also be removed.

The Tax Faculty will continue to work closely with the Treasury on changes in this area.

Business rates cut for film studios

In his speech, the Chancellor explained how studio space in the UK had developed rapidly and he wanted to support this growth with a 40% relief on gross business rates for film studios until 2034. This measure will be implemented as soon as possible and will be backdated from 1 April 2024.

Extension of full expensing to leased assets

Expenditure on plant and machinery used for leasing is excluded from the 100% first-year allowance (FYA), referred to as full-expensing, and the 50% FYA for special rate expenditure. The government is considering extending the 100% and 50% FYAs to leased assets and will publish draft legislation for technical consultation shortly.

Extension of sunset dates for freeport and investment zone tax reliefs

The government will extend the sunset dates for the tax reliefs in special tax sites to 30 September 2031 for English freeports and investment zones, and to 30 September 2034 for Scottish green freeports and Welsh freeports. 

Consultation of CARF and CRS

The government has published a consultation on:

  • the UK’s implementation of the OECD’s Cryptoasset Reporting Framework (CARF) and the government’s approach to its optional elements. The CARF provides a new framework for automatic exchange of tax-relevant information on transactions in cryptoassets; and
  • the UK’s implementation of the OECD’s amendments to the Common Reporting Standard (CRS). The amendments update the rules to include new types of assets and to improve its operation. 

Responses are required by 29 May 2024. If you would like to contribute to a response from ICAEW, please contact taxfac@icaew.com.

ICAEW Analysis of Budget 2024

Webinar: Budget 2024

Listen to ICAEW's Tax Faculty reflect on the Budget announcements and what they could mean for you and your clients.

Graphic of a signpost
The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

Further resources

Manifesto 2024: ICAEW's vision for a renewed and resilient UK
ICAEW Manifesto

ICAEW outlines its vision for a renewed and resilient UK economy and a series of policy recommendations for the next government.

Read more
Analysis from ICAEW's experts on the Autumn Budget 2021 and the comprehensive spending review published on 27 October 2021.
Budget 2024

On 6 March 2024, Jeremy Hunt delivered his budget reducing NI rates, increasing the VAT threshold for small businesses and pledging the end to 'non-domicile' tax status. Read ICAEW's reaction and analysis.

Read more
Person using a calculator

Information and guidance on technical and practical tax matters. Browse helpsheets, webinars and articles covering the latest developments.

Find out more
Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250