What a ‘Tax’ Relief - Samuel Ampah

Talking Drum Entertainment is a visionary UK company dedicated to the development and distribution of Black film and TV content. It started developing film projects in 2006 and in 2009 established a small part-time operation with the backing of Odeon Cinemas, organising premieres and special screenings across the UK. By 2011, it had transformed into Talking Drum Entertainment, quickly gaining a reputation for its unique and innovative approach to the production and distribution of Black films including Flower Girl, Tango With Me and Wedding Party II. 

The UK’s new Independent Film Tax Credit is creating significant interest across the filmmaking world, more recently at the American Film Market (AFM) 2024 in Las Vegas. This revised tax credit rebate supports film production in the UK across the board, offering a powerful incentive with a 53% enhanced credit rate for eligible projects with budgets up to £15 million. This translates to a 40% net benefit—a compelling draw for filmmakers worldwide.

But it’s not just the tax credit that’s appealing. The UK has long been known for its exceptional talent, both in front of and behind the camera, along with its world-class film infrastructure, strong cultural ties to the global Black community, and close links to Hollywood, which considers the UK its second home. This new rebate regime is likely to attract inward investment to the UK, which is projected to exceed the record £2 billion set in 2022.

Already, major streamers like Amazon and Netflix are expanding their UK production presence, joining established studios ready to make the most of these benefits. Some production companies and producers globally are adapting projects to meet UK guidelines, while others like XYZ Films (releasing Alphas) and Palisades Park Pictures (releasing Eyes in the Trees) have relocated to the UK to take advantage of these favourable conditions.

So, where are the Black production companies and producers from Africa, the United States, Canada, and beyond? Why aren’t we in the game?

Having shot It’s the Blackness in the UK through my company, Talking Drum Entertainment, under the previous tax rebate system, which offered a 20% return on qualifying spend, we know firsthand how valuable these rebates are and how seamlessly they work. However, with the new tax credit system, a qualifying spend of £1 million guarantees a £400,000 rebate—a highly attractive proposition by any standard.

The UK has solidified its place as a leading global destination for film production. As companies and producers worldwide explore the UK’s benefits, the British film sector anticipates a steady stream of international projects adapting to leverage this lucrative incentive. Yet, we are not seeing Black film production companies or producers taking advantage, and I am not sure why.

We have a large global primary target audience of 37.5 million people, according to research carried out by Talking Drum Entertainment, that we struggle to serve with films. Yet, Nollywood has stagnated, South Africa barely makes a dent on the global stage, and African American filmmakers don’t seem to be aware of or interested in exploring the opportunities, while Black Britain cannot get access to finance to enable them to participate meaningfully in their own film industry.

Hollywood, the streamers, and the mainstream film industry are at the forefront, as usual, so let’s not be the ones who turn up late to the party—or miss it altogether—because we failed to recognise what’s on the table. This new tax credit gives the global Black film community a real chance to step into the UK’s thriving production landscape. Now is the time to connect, collaborate, and take advantage of the rebate to bring our exciting, fresh stories to a hungry international audience through the support that’s available.

Samuel is a key member of Alliotts Media team, working with production companies and helping produce their accounts. He regularly presents at third party webinars and workshops on a range of areas of interest to media businesses, ranging from tax incentives, accounting and growing a business.

Can you explain in simple terms, to those who aren’t familiar, what the Independent Film Tax Credit is?

The Independent Film Tax Credit is a newly introduced and enhanced tax incentive designed for UK films with a budget of up to £23.5 million. This scheme offers an elevated headline rate of 53%, with an effective rate of 31.8% after tax, on production expenses Used or Consumed within the UK.

What does this mean for smaller/independent production companies?

This is a game-changer for all low-budget UK productions. The enhanced rate will significantly support financing for UK-based projects, giving independent films a stronger chance of securing the funds needed to move into production. 

Do you think Black production companies are aware of this tax credit rebate?

This is a newly introduced tax credit, and I believe it will take time to fully integrate across the industry. While Black production companies may be aware of it, many are still uncertain about the mechanics behind it and how they can access the benefits. Many believe the incentive is only accessible for big budget films, but in fact the incentive does not have a lower limit cap and in fact can be used on short films or micro budget features.

Is awareness the main reason why we aren’t seeing Black production companies take advantage of the scheme?

Yes and no. This is a brand-new incentive that technically does not come into full effect until April 1, 2025. One reason Black production companies are often unaware of these incentives is the ongoing difficulty of securing initial financing in the UK. Additionally, declining film profitability over the past decade has led financiers to adopt a risk-averse approach and stick to the status quo, further disadvantageing Black productions.

Alongside tax incentives, what other benefits are there to filming in the UK?

Alongside the tax credit, the UK boasts some of the best crew and filming facilities in the world. Combined with the fact that we are an English-speaking country with a relatively stable economy and government, this makes the UK an extremely desirable location for film production. 

How is the IFTC going to benefit the UK film industry as a whole?

This is one of the biggest changes to the UK independent film sector in a generation. The new tax credit will help reduce the financial risk of filmmaking in the UK while supporting the backbone of the industry—the independent market.

It will provide new and emerging filmmakers with a platform to grow, enabling them to take on bigger and better productions. This, in turn, will help cement the UK as one of the best places to film in the world.