EP NowStoreAcademySupportProduction LotProducts by Country
Blog Home

Understanding the UK Cultural Test

Find out whether your film or TV show will pass the UK’s Cultural Test, a key step in qualifying for the UK tax credit.
September 12, 2023

Sam Collett

EP Blog-WIDE-Sam Collett-Uk Cultural Test

Passing the so-called “Cultural Test” is a key step in qualifying for the UK tax credit and the forthcoming new iteration, the Audio-Visual Expenditure Credit.

But what exactly is the Cultural Test, and what requirements must a film or high-end TV (HETV) show meet in order to pass it?

What is the Cultural Test?

The Cultural Test is a set of requirements that determines whether a film or HETV show can be considered “culturally British.” There are four sections which can broadly be split in half:

  • Sections A and B – what is seen on screen; and
  • Sections C and D – who did the work and where it was done.

The Cultural Test for films and HETV shows has a total of 35 available points, with 18 needed to pass. Whether a production scrapes by with the minimum 18 points or easily scores a perfect 35 has no impact on the qualification; the test is a simple pass/fail exercise.

There is a common misconception that the Cultural Test has an impact on the value of the tax credit – this is not true. You must pass the Cultural Test to qualify for a tax credit, but beyond that, the test has no impact. It does not matter how you get the 18 points as long as you get them, but there is one exception (which we will discuss more below).

UK Currency Bills and Coins.jpeg

How do I get the certificate?

You apply for the Cultural Test online via the British Film Institute (BFI) portal; if the BFI is satisfied with your application, it will make a recommendation to the Department for Culture, Media and Sport (DCMS) to issue your certificate.

At present, the turnaround time is 18-20 weeks. Therefore, it is key to get applications in as soon as possible, as you cannot apply for the tax credit without a certificate; (indeed, an interim certificate is often a requirement from financiers for financial close as well).

There are two types of certificates available: interim and final. If you are mid-production and wish to make a tax credit claim, you must have an interim certificate, which can be applied for at any time. If there is any doubt or concern about qualification, be sure to apply for an interim certificate – which will provide comfort as to qualification – as soon as possible.

Interim certificates are issued on the basis of the plan for your film or HETV show. You will need to include a budget, shooting schedule and script and demonstrate how you intend to pass the test on the form.

Final certificates can be issued only once the production is completed. This is because the BFI will need to watch the finished project to assess whether the points claimed in Sections A and B are clear on screen. For points claimed in Sections C and D, you will need an accountant’s report (see below).

What points are available?

There are 35 points available to a film under the Cultural Test. This framework applies to films, but the HETV test is fundamentally the same. The Cultural Tests for children’s TV and animation are slightly different.

As mentioned in above, there is one combination of points that is not allowable. Under what is commonly called the "Golden Points Rule," your production cannot qualify if you score points only in Sections A4, C1, C2 and D1-8. Otherwise, any combination is acceptable, which allows for a significant amount of flexibility.

Key things to bear in mind are:

  • Section A is about what the viewer believes on screen – therefore, filming what appears to be a British village on a US studio set in would qualify as the film or HETV show would appear to be set in the UK.
  • Similarly, an actor’s nationality does not matter for Section A2 – it is all about the nationality or residency of the character and where it is established that they are from or reside.
  • The BFI is the ultimate arbiter of the availability of points in Section B, and you will need to provide clear descriptions and support for how your production demonstrates the points that are being claimed. For clarity, “diversity” can apply to subject matter which explores contemporary and social issues of disability, ethnic diversity, or social exclusion, as well as diversity in screen characters or on-screen or behind-the-camera talent with respect to gender, ethnicity or national origins, religion or spiritual belief, age, sexuality, disability, or social and economic background.
  • Other than Section C, all other areas allow for UK and/or EEA locations, nationality, or residency. Therefore, a character with a clear European nationality (such as Wonder Woman being Greek) would qualify within Section A2.
  • You will need to have evidence to support all points claimed in Sections C and D, so it’s important to retain passports and other supporting documents if needed. Digital onboarding technology – such as EP’s Production Portal, which creates a secure record of each engagement even after you wrap – can help in this respect.

To see a detailed explanation of the points system, broken down by section, take a look at our Cultural Test chart.

What is the accountants report that is required?

Accountants’ reports are required for final certificates where points are claimed in Sections C and D. These can normally be prepared by your external accountant or auditor.

Effectively, this is a third party reviewing (not auditing) the points that are being claimed and signing off on the points as being supported. They will likely want to see evidence such as:

  • Shooting schedules and set or location hire agreements for Section C1 points;
  • Composer contracts and recording studio agreements or orchestral invoices for Section C2 points; and
  • Passport copies for Section D points.

From a timing perspective you will need to factor in time for the accountant to prepare your report before submitting your application to the BFI, as well as the 18-20 week turnaround from the BFI and DCMS.

UK Flag Banners.jpeg

Who can apply for the Cultural Test?

You can apply for the Cultural Test yourself and submit the application with no involvement from external parties, particularly if you are only qualifying in Sections A and B.

However, it is advisable to (at a minimum) have your adviser review your application as they will likely know some of the nuances of the system and how to interpret the rules in a way to qualify in the most straightforward way.

For this reason, it is often easiest to ask your adviser to prepare the application for you, and it is always advisable to check in at the earliest possible stage on how a production could qualify to avoid nasty surprises down the line.

What happens if things change between receiving interim and final certificates? And what should I watch out for?

With the best will in the world, no production ever goes entirely to plan and there is no problem with changing points that you have applied for between interim and final certification. For example, if you have changed actors and now have a British/EEA actor but a US composer, you can swap those points.

However, if the result of the changes mean that you can no longer get 18 points, you will fail the Cultural Test. If you made an interim claim under your interim certificate, you would then need to repay that tax credit. This is an unusual scenario, but it could happen.

Some changes to watch out for are establishing scenes for characters that get left on the cutting room floor, foreign exchange movements hitting proportion of spend, location of VFX services provided and overrunning overseas shoots.

How EP can help you film in the UK

Overall, the UK Cultural Test is flexible and there are many paths that can be taken to pass it. Productions that might not initially look like they qualify can often find a way with some careful consideration or some tweaks to the script or budget.

If you decide to explore the UK as a filming destination, reach out to Lloyd Gunton and the team at FLB Accountants (an Entertainment Partners company). FLB is a UK-based chartered accounting firm with expertise in media and entertainment accounting, tax and tax incentives, finance, and accounting. They also provide film and TV tax credit incentive estimates and formal opinions to lenders, manage tax credit claim submissions, work with producers to advise on and finalise budgets and provide deal close support for both independent and multi-party financed projects.

Want to learn more about the UK tax credit? Check out our recent Master Series: What Productions Need to Know About the UK Tax Relief.

Related Content

What Does the UK's New Independent Film Tax Credit (IFTC) Mean for Productions?

3/7/2024
As the UK government strengthens its support for productions, find out what the latest changes to the...
More
Cameramen with professional equipment films two young people

What is an Incentives Estimate and Why Do I Need One?

8/21/2024
Find out how an incentives estimate can help you to lock down your production's finance plan and turn your...
Cameraman filming outside in a field

HMRC Announces Changes to Claiming UK Creative Sector Tax Incentives

4/26/2024
What productions should know about the increased disclosure requirements under the UK's Audio-Visual...
Thumbnail-Master Series panelists discuss Australia's Location Offset film incentive

How to Maximize the Benefits of Australia’s 30% Location Offset

8/22/2024
Learn how to boost your production's budget with the recently ratified Location Offset, other state and...

California vs. the World: The Race to Nab Film and TV Productions

8/22/2024
Locales from Atlanta to Tokyo are steadily beefing up their tax relief programs in bids to attract...

How Production Incentives Help Indie Filmmakers Choose the Best Filming Location

7/9/2024
Learn how selecting the right location can play a large part in preserving your production budge, thanks...
Master Series Thumbnail–UK indie film tax credit

Boost Your Budget with the Independent Film Tax Credit

5/9/2024
Learn how to maximize UK incentive dollars with the new IFTC!
Calculating UK tax increases

Budgeting for 2025: UK Tax Increases Impacting Film & TV Productions

11/26/2024
Learn how changes to UK payroll taxes and minimum wage rates will affect new and existing productions from...
Louisiana Film and TV Industry - Actor and camera crew on set

Louisiana Secures the Future of its Film and TV Industry Amid Tax Reform

11/25/2024
Legislators motion to preserve Louisiana’s historic film tax credit, lowering the cap to $125M.

What Does the UK's Enhanced VFX Rate Mean for Productions?

11/6/2024
Learn how the incoming enhancement of the UK's VFX incentive rate, including the eligibility of generative...
Thumbnail-New-York-Times

California Governor Proposes $750 Million in Annual Film Tax Credits

10/28/2024
Gov. Gavin Newsom wants to more than double the amount the state offers in incentives, which would make...
Film crew on UK independent film tax credit production

UK Independent Film Tax Credit (IFTC) Approved: Key Updates for Producers

10/10/2024
The UK government has passed the new Independent Film Tax Credit (IFTC) into law, providing welcome...
People on set discuss incentives estimates

Incentives Estimate or Opinion Letter: Which One Is Right for My Production?

9/25/2024
Looking to obtain funding for your production? Learn whether an incentives estimate or an opinion letter...
Canadian flag waving over Parliament

Tax Credit Changes Positively Impact Film and Television Production in Ontario

9/17/2024
Ontario’s recent tax credit changes make it easier than ever for film and TV productions of all sizes and...

Ontario Ready for Hollywood Post-Strikes Reality: “It’s a Reset Year for Everyone”

9/9/2024
Slowly but powerfully the major studios and streamers have returned to shoot originals on a tighter budget...
The Ankler logo-black and white-square

TV Production Exodus: 'Misery in L.A.', Who's Getting 'Screwed' and What to Do About It

9/3/2024
As streamers ship series elsewhere, lawyers and producers vent, and the state (finally) takes action....

8 Locations Independent Filmmakers Should Consider for Their Next Project

7/16/2024
Global jurisdictions with enticing incentive packages (and low minimum spend!) every filmmaker should know...

The Independent Filmmaker's Guide to Production Incentives

6/28/2024
Expert guidance on how production incentives work, and which may be best for your project and budget.

How to Secure Film Financing: An Overview for Independent Producers

6/19/2024
From choosing the right funding source to setting up LLCs and agreements, learn about the financing...
director looking at a woman on a camera monitor

Is New Jersey the New Hotspot for Filming on the East Coast?

5/14/2024
From attractive tax incentives to creative advantages, find out why the Garden State is emerging as a...
black and white filmmaker logo

Credits Where Credits Are Due

5/7/2024
Scott Macaulay looks at the state of film tax incentives in 2024.

Spotlight: Lloyd Gunton, UK Tax Credit Expert

5/7/2024
Meet the creative sector tax expert helping EP clients from indies to major studios maximize incentives...
Camera man and production crew on a film set

Curious About Co-productions? What Producers Need to Know.

4/9/2024
Discover the advantages, requirements, and strategies for successful co-productions in the film industry.
Los Angeles Times logo-sq

Georgia Film Tax Credit Bill Fails

4/1/2024
Georgia lawmakers kill effort to cap film tax credits as production hub continues to rival California.
EP Newsroom-Thumbnail-PGGB

PGGB Talent Development Fund: Year Two Reception

11/29/2024
The Production Guild of Great Britain (PGGB) recently celebrated the wrap of the second year of its Talent...
EP Newsroom-Thumbnail-PGGB

PGGB Membership Focus: Talent Development Alumni

11/25/2024
In its latest Membership Focus, the Production Guild of Great Britain (PGGB) spoke to members who have...
Podcast-film-florida-logo

Film Florida Podcast: Episode 132 – Joe Chianese, Entertainment Partners

11/12/2024
Joe Chianese speaks about his role providing production and legislative consulting, financial, tax, and...

Watch a ‘Call to Action’ for New California Tax Credits at IndieWire’s Future of Filmmaking Summit

11/11/2024
IndieWire's Future of Filmmaking Summit held in Los Angeles this weekend discussed Gavin Newsom's proposed...

$750 Million Tax Incentive Proposal by California Governor Gavin Newsom Could Spell Relief for Hollywood

10/29/2024
A new proposal could double California's film & television tax incentive program and retain valuable jobs...
Self-employed crew members work on set

New UK Employment Rights Bill: Significant Reform for Film & TV's Self-Employed?

10/29/2024
The highly anticipated Employment Rights Bill makes some major changes to UK employment law. But what does...
 Newsroom-Logo-Thumbnail-Newsweek

Gavin Newsom Tries to Save Hollywood

10/28/2024
The California governor has increased tax credits by more than $220 million to attract film and TV...
Joe Chianese speaks with Frank Mottek on the Mottek on Money radio show

Joe Chianese Talks Tax Incentives with Frank Mottek on the Mottek on Money Show

10/23/2024
In this episode, Chianese shares valuable insights on the current state of Hollywood's TV and movie...

6 Ways Film and TV Producers Can Benefit from Filming in Canada

10/16/2024
Learn why Canada’s recent production infrastructure and tax incentive changes offer big benefits to local...
RTS Film & TV Mini MBA students

Royal Television Society Launches Film & TV Mini MBA with Support from EP’s FLB Accountants

10/3/2024
This first-of-its-kind course is aimed at media professionals who want to broaden their skillset and...
Dark-haired woman operates a steadycam on set

The Producer’s Guide to Unions in the UK Film and TV Industry

10/1/2024
Take a whistlestop tour of the main unions governing the UK film and TV industry so that you can be...
Los Angeles Times logo-sq

California’s film industry is in crisis. Can it be saved?

9/18/2024
California has a film and TV production problem. Industry professionals and experts are trying to...
newsroom-logo-thumbnail-the-town-480

The Arms Race Behind Where Movies Shoot

8/22/2024
Matt Belloni is joined by Joe Chianese, SVP of Incentives at Entertainment Partners, to talk about where...
Square image of boom mic operator

Entertainment Partners Strengthens Operations to Support Production Growth in Australia and New Zealand

8/13/2024
Learn how EP supports global production by bringing innovative industry training, niche support services,...
UK Phases Out Biometric Residence Documents

More Right to Work Changes as UK Phases Out Biometric Residence Documents

8/8/2024
Find out what UK productions should do to prepare for the expiration of biometric residence permits on...
Topic: Legal
More
Camera man on a film set

How Could the UK’s New Labour Government Impact Employers in the Film & TV Industry?

7/25/2024
Learn about policies proposed under the Labour government's 'New Deal for Working People' that may impact...
EP News_SQUARE_Breaking Down Barriers-How Leading UK Organisations are Driving Inclusion in Film and TV

Breaking Down Barriers: How Leading UK Organisations are Driving Inclusion in Film and TV

6/17/2024
Notable UK training bodies and industry partners gather to reaffirm their mission to drive change and...
Woman looking at a laptop

20 IR35 Terms Every Production Worker Should Know

5/28/2024
Find out how to apply the UK’s IR35 rules to your film and TV productions with this helpful overview.
Fully Focused-Thumbnail-480

Entertainment Partners and Fully Focused Partner to Support the Future of UK Production

5/7/2024
New partnership aims to foster the next generation of UK production professionals and break down barriers...
EP Blog_SQUARE_Filming in Australia

Filming in Australia: Your Guide to Incentives, Infrastructure, and the Future of Production Down Under

5/1/2024
Learn about Australia’s growing film incentives, new production facilities, and what’s next for Aussie...
Four Panelists from Indie Producer's Playbook

Indie Producer’s Playbook: Setting Up a Successful Production

4/19/2024
Learn best practices for how to set up and run a successful production, from choosing the right corporate...
EP Blog-Bob Clarke-Mama Youth

Celebrating (Almost) 20 Years of MAMA Youth Project

4/17/2024
UK charity’s founder, Bob Clarke, shares how this unique initiative is breaking down barriers to...
Producer and actor standing on a film set

How to Prepare for an Audit: Tips for UK Productions

4/16/2024
Discover key strategies UK film and TV production companies can use to effectively prepare for an audit.
Topic: UK
More
National Film and Television School

Entertainment Partners To Provide Funding For Future Assistant Directors And Floor Managers

3/28/2024
Two new scholarship opportunities are now available for those looking to train in the field of assistant...

Japan's Latest Film Tax Incentive Sets the Stage for Global Productions

3/13/2024
From Miyazaki to Godzilla, Japan is entering a cinematic renaissance and poised to attract international...

Payroll & Finances

PayrollResidualsSmartStartSmartTimeEP On LocationSmartAccountingEP LiveSmartPOCASHétPayPaymaster Rate GuideEP ResidencyMoneypenny

Manage Multiple Productions

AssetHubSmartHub

Additional Services

Academy
Subscribe now

Be an industry insider with EP's
newsletters and alerts

LegalPrivacy NoticeSecurity
© 2024 Entertainment Partners. All rights reserved.