Tax breaks to bring more Bollywood magic
The British film industry could soon be flavoured with the spices of the Orient, if a new UK/Indian film partnership, which takes advantage of significant tax incentives, proves fruitful.
Link: Film industry banks on new incentives
The scheme, called Motion Pictures Partners International (MPPI), will provide £34m for the production and acquisition of Bollywood films, ten of which are already in production, including ‘Bollywood Dreams’ by internationally acclaimed writer and produced AR Rahman and ‘Judgement’, starring former Miss Universe Lara Dutta.
The MPPI professional team includes representatives from BDO Stoy Hayward who will act as tax advisers.
MPPI is hoping to attract investors with offers of high rates of tax relief, a guaranteed level of returns and the prospect of additional profits on its portfolio of films currently being produced in facilities in Leicester and in India for the Indian market.
Investors will qualify for an increase in initial tax relief from 40% to 140% of their capital contribution – to qualify for this incentive, 70% of a film’s budget must be spent in the UK.
The government, which has already signalled its commitment to the British film industry through its tax regime, has given its full backing to the scheme.
DTI secretary Patricia Hewitt, speaking at the launch of MPPI, said the scheme was ‘good news for Leicester and good news for British film industry’.
She added: ‘In attracting investors, I hope the scheme will help boost jobs and productivity.’