TaxCorporate TaxEU demands tougher tests for UK film tax reliefs

EU demands tougher tests for UK film tax reliefs

European Union clears UK tax relief for films, but demands tougher rules to qualify

The UK film
industry
can continue to take advantage tax relief available to the
sector, but will have to meet more stringent requirements to do so, the EU
decided today.

Tax reliefs for UK filmmakers were introduced in the 2006 Finance Bill and
received royal assent in July this year. The regime, however, required
EU State Aid Approval, which was granted today.

Fiona Hotston Moore, managing partner of
MRI Moores Rowland
, said the announcement would have a negative impact on the long term future
of the local film industry because of new cultural requirements, since it would
deter US studios who help foster British film making.

‘If a film was filmed and produced in the UK and the dialogue was in English
it would be eligible for tax relief. The new cultural test means that the
producer and director will have to be British to claim the reliefs,’ Hotston
Moore said.

A number of US studios have chosen the UK as a location because of the tax
reliefs, but the new rules mean that many of these studios will no longer be
eligible for the reliefs.

Further reading:

Profile:
Fiona Hotston Moore, of Moores Rowland

Former Pathé FD launches film hedge fund

Draft film tax relief regulations published

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

2m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson