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Four phases of productionÌý

The AVEC legislation sets out four phases of producing a film or TV programme:Ìý

Expenditure eligible for AVEC is limited to core expenditure, which is expenditure on pre-production, principal photographyÌýand post-production (CREC051000). This means that expenditure on the first phase of production, development, must be separated from core expenditure.

Attributing costs across the phases of productionÌý

Specific activities within each of the four phases do not always take place in a strictly sequential way, and a given item of expenditure may be attributable to several stages.ÌýFor example:Ìý

In each case,Ìýit would be reasonable to consider that all these examples contribute to more than one stage of production.Ìý

It is important to first identifyÌýwhich phase(s) of production a given item of expenditure contributes to. It is then necessary to determineÌýhow much expenditure is attributable to that phase.Ìý

The attribution of costs between phases of production must be done on a just and reasonable basis (CREC055000).

Distinguishing development from later phases of productionÌý

Because AVEC is available on pre-production expenditure but not on development expenditure,Ìýit is important to understand the difference between the two.Ìý

Development expenditure is essentially speculative. It relates to those activities undertaken with the aim of determiningÌýwhether the filmÌýor TV programmeÌýis a commercially feasibleÌýproject which might proceedÌýto the later stages of production.Ìý

Pre-production expenditure, in contrast, is not speculative. It is incurred on those activities undertaken in the knowledge that a decision has been taken for the film or TV programmeÌýto go ahead. Such activities can, however, be undertaken even where some development activities are still taking place.

Expenditure attributable partly to development and partly to later phases of productionÌý

Some costs relate toÌýbothÌýthe developmentÌýphaseÌýand other phases of production. Examples of such costs would be those incurred on the script and the producer’s fee. Where the costs of the film/TV programmeÌýattract relief, it is necessary to establishÌýto what extent the expenditure on the script is incurred on establishingÌýwhether a film/TV programmeÌýcan be made and what it should be like and how far it is incurred on actually makingÌýthe film/TV programme.Ìý

The correct apportionment willÌývary according to circumstances.Ìý

For example, if a producer worked substantially full-timeÌýon a film for a year, with the first three months being taken up with development and the remaining nine months with pre-production, principal photographyÌýand post-productionÌýit would be reasonable for one quarter of the producer’s fee to be allocatedÌýto development.Ìý

A script could be used during the development stage of a productionÌýas well as the later phases.ÌýIf the original script was more or less unchangedÌýthrough this process,Ìýthen it may be reasonable to allocateÌýits costs according to the extent to which reference is made to it during the various stages of production in which it is used.Ìý

However, if the script writer is paid an initial fee for a first draft of the script for development purposes,Ìýfollowed by further instalments as the project proceeds to the later stages of production and further refinements are made to the script,Ìýthen it may be reasonable for the allocation of costs to more closely follow the timing of the payments and the use to which the various versions are put.Ìý

Animated films and TV programmesÌý

DevelopmentÌý

Development is the stage of creation of an animation in which the project progresses from the initialÌýconcept to the point at which a decision can be taken whether or notÌýit should proceed.Ìý

When looking at the development stage for animation, there may be parallel elements of pre-production. Animation requires more visual and aesthetic creative work at an early stage to proceed.

Pre-productionÌý

Pre-production is the stage of production where activity begins to be directed at actually making the animation.ÌýThis may include the following activities:Ìý

Typically, pre-production will see the script finalisedÌýand a storyboard or animatic produced.

Principal photographyÌý

Principal photography for an animation is the stage at which filming or final rendering occurs. This stage will often require thatÌýcertain key elements from pre-production areÌýcomplete. However, other stages of pre-production might continue.Ìý

It is also the stage at which key elements of the soundtrack are created. This includes the main vocal tracks from actorsâ€� performances. This element of principal photography will occur in advance of other stages of animation.Ìý

Post-productionÌý