TaxCorporate TaxStruggling film industry needs tax breaks

Struggling film industry needs tax breaks

The British film industry faces crippling competition unless tax breaks are extended to films costing more than £15m, accountants have warned.

Link: Tax review for British film industry

The government’s policy to support the film industry allows film producers and investors to claim 100% tax relief provided their films cost less than £15m.

The ICAEW has called for the limit to be ‘substantially raised’ to help British films to ‘compete on a world stage rather than just produce what are generally low-budget British films’.

The Treasury said it would keep issues under review, but added: ‘If we thought the limit should be higher, we would have set it higher’.

The warning comes as the London Film Festival, which ends today, is showing some 200 non-blockbuster films including Meera Syal’s latest cinema outing Anita and Me.

The festival believes it would benefit from a tax relief boost to the film industry, but was unable to quantify exactly the average budget of its featured films.

To prevent TV companies using the tax breaks to finance soaps, the scheme only applies to films made for cinema.

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