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.”