TaxCorporate TaxAS2013: Tax reliefs for large films extended

AS2013: Tax reliefs for large films extended

Reliefs to take in regional theatre productions, but video games miss out

TAX RELIEFS for large films and similar cultural productions are to be extended, the chancellor confirmed in his Autumn Statement.

Larger productions, such as that of Disney’s upcoming Star Wars feature are to receive 25% tax relief on the first £20m spend, and £20% thereafter.

Previously, there had been two reliefs, one for small ventures and another for larger projects. The two have now been combined.

The changes see the proportion of the productions obliged to take place in the UK drop from 25% to 10%.

There is also some disappointment from practitioners and industry that the reliefs are not extended to video games production and visual effects work. They do, however, take in regional theatre productions.

MHA MacIntyre Hudson tax partner Tom Byng said: “This should encourage films to be made in the UK with a £1m tax saving, however the reduction in the minimum UK spend may mean some of the wider economic benefits may be lost.”

Related Articles

Q&A with the Financial Secretary to the Treasury

Corporate Tax Q&A with the Financial Secretary to the Treasury

4m Emma Smith, Managing Editor
Government looks to close tax loophole on staff benefits

Corporate Tax Government looks to close tax loophole on staff benefits

1y AccountancyAge staff
Post-Brexit Britain ‘open for business’ as Osborne to slash corporate tax rate

Corporate Tax Post-Brexit Britain ‘open for business’ as Osborne to slash corporate tax rate

1y Fraser Simpson, Reporter
UK leads charge for action on beneficial ownership

Administration UK leads charge for action on beneficial ownership

2y Fraser Simpson, Reporter
Cameron to announce new corporate offence for tax evasion

Administration Cameron to announce new corporate offence for tax evasion

2y Fraser Simpson, Reporter
UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

Corporate Tax UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

1y Fraser Simpson, Reporter
Tax transparency plans adopted across Europe

Administration Tax transparency plans adopted across Europe

1y Fraser Simpson, Reporter
UK pressures OECD to tackle unhelpful tax jurisdictions

Administration UK pressures OECD to tackle unhelpful tax jurisdictions

2y Fraser Simpson, Reporter