Film makers demand 100% tax relief
The Treasury is under pressure from British movie makers to extend beyond 2002 a 100% tax relief deal that has helped dozens of small UK films through production.
The 1997 Finance Act introduced the break for UK film productions with budgets of less than £15m, and 33.33% annual tax relief over three years for films costing more than £15m. But the new Film Council, set up in May with a £22m war chest to develop a strategy for the UK industry, wants to see the concession extended beyond July 2002.
The Producers Association for Cinema and Television and the council hope for an announcement in Gordon Brown’s autumn pre-budget report.
PACT head of film Bertrand Moulliers said: ‘The Treasury don’t like tax breaks, but have been sensitive that this mechanism has helped remedy the UK market. They are vital if the UK is going to be considered by Hollywood as a production location.’
Last year only ten out of 70 British films released took more than £2m compared to Hollywood where profits are regularly in excess of £50m.