Film industry hopes for happy ending
UK film producers will be in suspense for the next month to find out whether they will win tax breaks from Chancellor Gordon Brown in his Budget.
The film industry is one of several contenders for government largesse, but it will need to overcome the Inland Revenue’s in-bred resistance to policies that favour one industry over another.
According to KPMG tax partner Bob Watts, who specialises in entertainment, the government has recognised the film industry as a special case.
Watts participated in a financial subgroup that reported to the government’s film policy review group led by PolyGram Film International chairman Stewart Till.
Watts said the subgroup discussed proposals such as tax relief on investments in film production funds with the Inland Revenue.