Budget 05: Tax relief for UK films extended
Section 48 tax relief for low-budget UK films to be extended.
A tax relief scheme for low-budget UK films is to be extended until the end of March next year, despite expectations that it would end in the summer.
The so called section 48 relief for movies budgeted at under £15m will now run much longer than expected and amid hopes that it would be replaced altogether.
Section 48 was introduced in 1997 but was extended in 1999 and 2001. The industry has complained bitterly that failure to clarify the future of section 48 has made the planning of production schedules extremely difficult.