Film London Tax Announcement
Date posted: 05.12.2005
Adrian Wootton, CEO of Film London, today warmly welcomed the Chancellor’s announcement of a new film tax relief which will provide support to films made in the UK.
Speaking following the Chancellor’s announcement, Adrian Wootton said: “This is fantastic news for the London film industry. We now have the competitive edge to further extend our position as one of the great production centres of the world.
“We are delighted that the Chancellor has recognised the cultural and economic importance of the film industry and the benefits that feature films bring to the UK. This year big-budget productions such as The Da Vinci Code, Stormbreaker and V for Vendetta have successfully shot in London, using unprecedented support on the ground through the new London Filming Partnership. This new tax relief means we look forward to attracting even more films of this calibre in 2006 and beyond.
“This announcement will benefit the wider industry through promoting the continuing development of new skills and technologies, which have a positive impact on the creative sector as a whole. The measures will also bring enormous value to the London tourism sector, with even more London films set to reach cinema screens across the globe.
“The extension of tax relief for films with budgets of £20m or below is a fantastic boost for our London film-makers and the vast majority of films shot in the capital. In the past year projects such as Anthony Minghella’s Breaking and Entering and Working Title’s Sixty-Six have shot in London with budgets of under £20 million.
“We also welcome the clarity of the new transitional arrangements and cultural test which we are confident will simplify the implementation of the tax relief.”
The new tax relief announced today will mean:
- on low budget films (with production budgets up to £20 million), the tax credit level will be 20%;
- on higher budget films (with production budgets of £20 million and above), the tax credit level will be 16%;
- this level of tax credit applies to the total amount of UK spend - for example, for a film with a total budget of £25 million, with a £10 million UK spend, the tax credit will only apply to the £10 million UK spend; 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.
For more information visit the HM Treasury website.
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