United Kingdom
[GB] Further Details of New Tax Incentives Available for Culturally British Films Announced
IRIS 2006-2:1/18
David Goldberg
deeJgee Research/Consultancy
As highlighted by the UK Film Council, the Chancellor of the Exchequer's December announcement relating to new tax incentives available for culturally British films entails the following:
- on low budget films (with production budgets up to GBP 20 million), the tax credit level will be 20%;
- on higher budget films (with production budgets of GBP 20 million and above), the tax credit level will be 16%;
- this level of tax credit applies to the total amount of UK spend -up to 80%; and
- a more flexible system allowing producers to phase tax credits taking them either at the start of production, or later when they are receiving profits from the film.
References
- 2005 Pre-Budget Report, p112, Sections 5.95 - 5.96 Film Tax Reform
- http://www.hm-treasury.gov.uk./media/FF8/07/pbr05_completereport_1980.pdf
- UK Film Council Welcomes New Tax Relief, press release of 5 December 2005
- http://www.ukfilmcouncil.org.uk/news/?p=D4A157781d6b9286FFrMk3935491
This article has been published in IRIS Legal Observations of the European Audiovisual Observatory.