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UK film tax incentives receive boost

Filmed in the UK GravityEnhancements to the UK’s film tax incentives have received State Aid approval. Announced as part of the Chancellor of the Exchequer’s budget speech, the changes include a reduction in minimum UK expenditure, and will take effect from 1 April.

Among the changes are: film tax relief being available at 25% on the first £20m of qualifying production expenditure and 20% thereafter, for small and large budget films; minimum required UK expenditure to be lowered from 25% to 10%; and the modernisation and expansion of the cultural test to allow for European as well as British culture, reflecting other creative content tax reliefs.
Adrian Wootton, chief executive of the British Film Commission (BFC) and Film London, added: “The BFC co-ordinated an industry response to the Government consultation on the enhancements to the tax relief so we are thrilled that they will be implemented from 1 April. These changes will make the UK’s world-class production industries even more attractive and accessible to international and British filmmakers and further build on and expand the UK's business prospects.

“Importantly it will allow the UK’s world-class VFX and post production sectors to remain competitive and the BFC will be hosting a group of senior US executives next month to capitalise on the new opportunities. It’s also important to note the hugely positive impact of the tax relief changes on the UK’s international co-production prospects, opening up opportunities with a wide range of international territories."

The enhancements will no doubt give a boost to the UK’s already attractive incentives, which also include a tax relief for high-end TV (in particular drama) and animation, applying to productions with budgets exceeding £1m per hour of TV.

This year a flood of Hollywood movies will be transending to the UK, incuding Mission: Impossible 5, Star Wars: Episoide VII and Tarzan.

To find out more about UK film tax incentives, or incentives for other countries across the globe, click here.

Related stories:
California film czar urges tax credit boost
Introducing film incentives pays off in more ways than one

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