UK Tax Incentives Drive Surge in International Film Production, Highlighted by Steven Soderberghs The Christophers

The United Kingdom’s film tax incentives are once again pulling international productions like a magnet, a trend that shines brightest through Steven Soderbergh’s 2026 feature The Christophers. The movie— a UK‑US co‑production headlined by Ian McKellen, Michaela Coel, Jessica Gunning and James Corden— opened to the largest domestic box‑office haul for Picturehouse Entertainment, the film’s UK distributor.

At the heart of this success lies the Enhanced Audio‑Visual Expenditure Credit (Enhanced AVEC), a fresh tax credit introduced in the 2023 Spring Budget to support lower‑budget features. The Enhanced AVEC consolidates several older reliefs—Film Tax Relief, High‑End Television Tax Relief, Children’s Television Tax Relief and Animation Tax Relief—into a single, streamlined credit. For films with core expenditure up to £15 million, the credit amounts to 39.75 percent of qualifying spend, covering a broad spectrum of production activities.

Producer Jim Parks explained that the credit helped secure 31.8 percent of The Christophers budget from HM Revenue & Customs, a boost that opened doors to additional financing and enabled the crew to shoot the entire film on location in London.

“By keeping post‑production and visual‑effects work in the UK, we could portray a very authentic and honest version of London life,” Parks said. The credit also facilitated the hiring of UK‑based talent and the use of local facilities, reinforcing the country’s reputation for high‑quality infrastructure.

Regional funding bodies across the UK have amplified this momentum. In March 2026, the Greater Manchester Combined Authority (GMCA) unveiled a £10.5 million production fund as part of its Creative Places Growth initiative, aimed at attracting film and television projects to the region and supporting local crews and facilities.

North East Screen, backed by the North East Screen Industries Partnership, has added top‑up funding for projects such as the action thriller Jackdaw and the BBC comedy drama Smoggie Queens. The West Midlands Production Fund, a legacy recoupment pool that reinvests profits from earlier projects, has recently backed Retreat, The Colour Room and Terence Davies’ final film Benediction.

Other regional offices have also stepped in. Liverpool Film Office has financed productions including Babak Jalali’s comedy drama A Town in Nova Scotia, ITV’s courtroom thriller Saviour and BBC’s This City Is Ours. Screen Yorkshire’s Yorkshire Content Fund has supported Shane Meadows’ Chork, Paul Andrew Williams’ Dragonfly, the crime thriller Virdee and the BBC drama Reunion.

The West of England mayor’s office announced plans to launch a new regional production fund later in 2026, backed by a £25 million Creative Places Growth Fund. The initiative will support projects such as Disney+ series Rivals, which was filmed at Bristol’s The Bottle Yard Studios.

Scotland’s Screen Scotland has attracted international productions through its top‑up funding, with recent titles including The Incomer, Black Church Bay, California Schemin, Glenrothan and Sunny Dancer. In Wales, Creative Wales/Ffilm Cymru has backed films such as H Is For Hawk, The Man In My Basement and Effi o Blaenau, as well as high‑end television series like House of the Dragon Season 2 and Young Sherlock.

Northern Ireland Screen’s funding has supported feature films Kneecap and Lie Of The Land, and high‑end television projects including A Knight Of The Seven Kingdoms, Blue Lights Season 4 and Line of Duty Season 7.

The blend of national tax credits and regional top‑up funds has forged a robust ecosystem that draws international co‑productions while nurturing local talent and infrastructure. The continued success of projects such as The Christophers demonstrates the effectiveness of the UK’s incentive package and its role in sustaining the country’s position as a global filmmaking hub.

The Enhanced AVEC remains a key driver for lower‑budget features, while the broader network of regional funds ensures that productions can find suitable locations and support across England, Scotland, Wales and Northern Ireland. Together, these mechanisms reinforce the UK’s appeal to international studios and independent filmmakers alike.