Tax incentive brings Bollywood to UK film industry
The British film industry could soon be flavoured with the spices of the orient if a new UK/Indian film partnership, which takes advantage of significant tax incentives, proves fruitful.
The scheme, called Motion Pictures Partners International (MPPI), will provide £34m for the production and acquisition of Bollywood films. Ten are already in production, including Judgement, starring former Miss Universe Lara Dutta.
The MPPI professional team includes representatives from BDO Stoy Hayward, which has been appointed as tax adviser to the scheme.
MPPI is hoping to attract investors with the promise of high rates of tax relief, guaranteed returns and the prospect of additional profits on its portfolio of films currently being produced at facilities in Leicester and in India for the Indian market.
Investors will qualify for an increase in initial tax relief from 40% to 140% of their capital contribution.
For a film to qualify for tax relief under the plans, 70% of the budget must be spent in the UK.