Film makers in UK might get tax cuts
Ministers are considering offering tax breaks to film makers in order to encourage the movie industry to make more major films in the UK.
The initiative follows last week’s publication of a report by a specially commissioned creative industry task force.
The taskforce found that creative activities contributed #60bn a year to the UK economy.
The chancellor has already introduced measures that let companies offset the costs of making or buying films worth less than #15m, against tax.
This ceiling may be raised or abolished.
Ministerial concern was fuelled by the announcement last week that George Lucas would film the next two ‘Star Wars’ prequels in Australia, and not in the UK where the other films in the series were made.
Terry Heard, FD of Carlin Music, said aid for films should be matched by incentives for the music business, which is suffering a sales downturn.
He said: ‘Deals over future artist royalty rights indicate banks and venture capitalists are looking at intangible assets. But in many creative industries, people don’t understand the gamble.’