TaxCorporate TaxTax credit changes lure back film producers

Tax credit changes lure back film producers

Film spending in UK climbs 48% to £840m after a tax credit regime lures back the industry 

harry potter

International film producers flocked to the UK last year ahead of the
government’s new tax
credit
system for the film industry.

Spending on movie production in the UK climbed 48% to £840m in 2006, as films
such as Harry Potter and the
Order of the Phoenix
and the Bourne Ultimatum chose
to shoot in the UK.

The FT
reports that UK film production peaked at £1.16bn in 2003, but fell 30%
in 2004 after the tax regime for films was criticised for opening an avoidance
loophole for wealthy investors.

The new scheme has improved sentiment in the UK system, and producers are
starting to favour the UK as a production venue once again.

Under the new rules a film does not have to be shot entirely in the UK to
qualify for the relief. Instead, it will be judged using a points system that
will evaluate whether the leading characters are British, whether the setting is
in Britain and whether it promotes British culture.

Further reading:

EU demands tougher tests for UK film tax reliefs

Draft film tax relief regulations published

Profile: Fiona Hotston Moore, of Moores Rowland

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