UK film companies win PBR tax breaks
Film makers get PBR tax breaks, but could miss final cut
UK film companies, such as Working Title Films who made Sixty Six, could
still face problems despite the PBR announcement that the sector will qualify
for a new tax relief from the start of the New Year.
The decision came after the European Commission gave final clearance to the
‘cultural test’ which acts as the benchmark for the new film tax relief
opportunities available from 1 January, 2007.
Lucy Elwes, tax director at KPMG said: ‘This change has been a long time
coming, but the acid test is going to be whether banks will be prepared to lend
against a future tax repayment. Companies need funds up front to get their
projects off the ground. Today’s announcement has fired the starting gun for
negotiations with financiers, but many may still struggle to find the funds they
need.’
Gordon Brown indicated that the revenues in the sector had risen 50% since
1997, but needed more support leading to the changes.
For more go to www.britfilms.com