Film industry boost to UK economy
31 October 2012 Last updated at 09:10 GMT
Film tax relief brings in at least £12 for every £1 spent on it, according to the British Film Commission, with three new creative tax reliefs planned for 2013.
The film industry is worth an estimated £1.6bn to Britain's GDP and employs about 44,000 people.
The BBC's Steph McGovern visited a motion capture studio to find out how the magic happens.
She was joined by Sir William Sargent, chief executive of visual effects company Framestore, and Samantha Perahia of the British Film Commission.