Toy Story 3 beat the latest Harry Potter film to be king of the box office in 2010, as film fans spent more than £1 billion at cinemas.
The year's highest grossing film was the latest adventure from Buzz Lightyear and his pal Woody which took £73.8 million, followed by Harry Potter And The Deathly Hallows Part One, which took £50.6 million.
More than a fifth of the box office take (22.6%) went on British films according to the figures, released by the UK Film Council, which cover the UK and the Republic of Ireland.
Investment in making films in the UK reached £1.15 billion but the number of UK films made - and the money spent on making them - both fell.
International filmmakers, including the major Hollywood studios, spent more money than ever in the UK this year pouring £928.9 million into making 28 films including Steven Spielberg's War Horse, Captain America: The First Avenger, and the new Pirates Of The Caribbean film.
The council's managing director Tim Cagney said: "These figures - over £1 billion of investment in UK film production and more than £1 billion spent at the UK box office - underline the vital contribution that film makes to Britain's cultural and economic fabric. After ten years of UK Film Council support, they highlight the importance of a strong film sector and reinforce the UK's reputation as one of the most competitive and highly-skilled places in the world to make films.
"The figures also show how difficult it is to raise finance for making independent British films and, with four of the top ten grossing UK independent films funded by the UK Film Council, the ongoing value of public investment in new British films and talent."