Why the UK is suddenly that attractive to filmmakers
This year, the UK film industry has gained serious momentum — thanks in part to a set of generous tax and business-rates incentives that are reshuffling where and how big productions are made. As of February 2025, eligible film studios in England are now receiving 40% business-rates relief, a scheme that runs through to 2034.
At the same time, the Audio-Visual Expenditure Credit (AVEC) for smaller films (budget under £15 million) has been bumped to 53%, a change backed by the BFI and a long list of UK filmmakers. Plus, from April 2025, Visual Effects (VFX) expenditure in the UK will attract a net tax credit of 29.25%, with the 80% “cap” on qualifying costs removed.
These financial changes are not theoretical — they are already having a tangible impact on inward investment. According to Screen Global Production, UK production spend nearly tripled in Q1 2025, much of it fueled by co-productions and international projects.
What this means for Black Hangar Studios (and production partners)
For a sound-stage facility like Black Hangar Studios, these incentive shifts are more than just background noise — they create real potential for growth, higher utilisation and more ambitious productions. Here’s how:
- Increased demand for stage space: With operating costs of studios reduced via business-rates relief, productions are more likely to commit to larger, longer shoots, which means Black Hangar’s stage capacity becomes more competitive and attractive.
- More VFX-heavy work stays local: The VFX tax credit uplift makes it cheaper for productions to do their post-production VFX in the UK rather than outsourcing abroad. That’s a big win for UK-based post-houses, and for studios that act as production hubs.
- Boost for indie & mid-budget films: The enhanced AVEC creates breathing space for smaller films — scripts and projects that previously struggled to clear financing hurdles. Black Hangar is well-placed to host these indie productions, co-productions, and hybrid shoots.
- Regional growth & infrastructure: These incentives dovetail with broader UK government plans. The June 2025 Creative Industries Sector Plan allocated £380 million for creative innovation, regional growth, and apprenticeships in film & TV. Studios that are outside London or have scalable infrastructure stand to gain from this push.
Challenges & creative opportunity
Of course, with opportunity comes complexity. Here are some of the trade-offs and strategic questions for studios, producers, and creative teams:
- Balancing incentive with authenticity: As productions flock to take advantage of these credits, there’s a risk that projects feel “incentive-driven” rather than creatively organic. Studios like Black Hangar can lean into their identity as places of craft and innovation, not just finance-enabled volume.
- Talent vs space: Increased production may demand more from local crews, but studios will also need to ensure that talent — particularly post, VFX, lighting and camera teams — scale sustainably.
- Long-term infrastructure: Business relief is a great temporary boost, but real sustainability comes from investing in long-term facility upgrades, green infrastructure, and flexible stages to accommodate a wide variety of productions.
- Partnerships across the chain: From production to post, the most competitive projects will be those that can tap not only studio space, but also local labs, VFX houses and scanning / restoration facilities. Building those partnerships early is key.
A momentum moment for Black Hangar Studios
Black Hangar Studios is uniquely poised to ride this wave of growth. By offering first-rate sound stages, sophisticated infrastructure, and a commitment to being a long-term production partner, the studio can be a go-to for filmmakers looking to benefit from these incentives — without compromising on quality or creative ambition.
As productions grow in size, scope and technical ambition, and as inward investment keeps flowing into the UK, having a stage that is both financially competitive and creatively capable is a strong advantage. For producers weighing where to shoot or post, Black Hangar’s combination of space, location and strategic positioning could make all the difference.
If you're a producer, director or production manager looking to capitalise on the UK's 2025 tax incentives — and want a sound stage partner that understands both infrastructure and creative integrity — Black Hangar Studios is ready when you are.
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