Not a lot of people know that tax refund cycle threatens British film industry
The British film industry is suffering as a result of the Inland Revenue’s administration of the popular 100% tax relief on film investments, according to financiers and tax experts, writes Gavin Hinks.
They say the Revenue’s refusal to return tax refunds until after the end of the tax year is warping the cycle of film production and could be creating #45m in extra costs.
Investors looking to put money into film production as a tax shelter are becoming concerned that it takes too long to receive their refund according to Jeff Abberley, a director and accountant with financiers Future Film Group.
Many investments are now being concentrated towards the end of the financial year creating problems for producers. ‘This is a positive disincentive for investing in films early in the year,’ he said.
Future Films is involved in Last Orders, starring Michael Caine (left), due to premier next month.
The Revenue said it has ‘no plans’ to change the way the scheme is administered.
A longer version of this story can be found at www.accountancyage.com/News/1123995