TaxCorporate TaxTax clampdown may scare off Hollywood studios

Tax clampdown may scare off Hollywood studios

The glamour of last night's Baftas has been dampened after one of Hollywood most influential film studios warned that the Treasury's decision to scrap favourable tax breaks could force it, and other major studios, to ditch the UK.

Link: UK film industry threatened by tax clampdown

Miramax, the studio responsible for hits like Cold Mountain and Gangs of New York issued this dire warning after new rules came into effect last week which clamp down on tax avoidance schemes that exploited trading losses through partnerships.

Colin Vaines, head of European productions at Miramax, which uses British crews and studios to make its films, said the tax changes would ‘strike a terrible blow to investment in Britain’.

He told The Observer: ‘Miramax and other US majors such as Warner Brothers, who make Harry Potter and Universal, who are behind James Bond, will take the bulk of their productions to Canada, Berlin or Hungary – where the tax breaks are becoming more favourable.’

The Revenue is currently discussing the legislation with representatives from the UK film industry.

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