Revenue defiant on tax loophole closure
It is looking increasingly unlikely that the Inland Revenue will grant UK film-makers any concessions following its decision to close a tax loophole, exploited by some film productions.
Link: Revenue leaves film industry on tenderhooks https://www.accountancyage.com/News/1136273
In a strongly worded statement the Revenue accused some film-makers of ‘abusing the current loophole’.
‘The government simply cannot be expected to stand by and let people who are drawing up complex and abusive schemes to take advantage of a loophole in the relief and avoid tax at the expense of honest taxpayers,’ the Revenue said.
But, it also claimed the legislation would not prevent film-makers benefiting from film tax relief and said the loophole closure ‘will not hurt legitimate film-makers.’
The Film Council has held talks with the Revenue to ask for a transitional period so that filmed about to go into production or those already in production are not affected.
But the Revenue has closed ranks on the subject and refused to comment beyond its official statement.
Next month’s Budget will include proposals on the details of the successor to the existing relief for low budget films which will expire in 2005, the Revenue also pointed out.
A spokesperson for the Film Council said there had been no update since talks were held with the Revenue earlier this month.
