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.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

7m 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

8m Alia Shoaib, Reporter