Pinewood hopeful over Budget tax breaks
UK studio puts bad year behind it and looks to the future
Film tax incentives announced in last week’s Budget should turn around the
fortunes of Pinewood Shepperton, the renowned UK studio has announced.
The company saw a massive drop in profits from £6.4m in 2004, to just
£571,000 in 2005, despite it being used to make such films as the Da Vinci
Code and Basic Instinct 2.
Uncertainty over the system of tax relief was blamed for a large part of this
fall, with many producers unwilling to come to the UK after the Treasury
announced last year that the system would be changed to prevent abuse.
Last week’s Budget unveiled a simpler system of tax breaks, meaning films
costing less than £320m will receive a 20% tax credit while those over £20m will
Pinewood chief executive, Ian Dunleavy, said the announcement has ‘given more
clarity to the situation’, according to The Daily Telegraph.