TaxCorporate TaxEU approves further tax breaks to British film industry

EU approves further tax breaks to British film industry

Government given green light to continue tax breaks to UK film industry

EU approves further tax breaks to British film industry

GOVERNMENT PLANS to extend tax breaks for the production of films in the UK have received approval from the European Union.

Under the tax break, film production companies can claim tax relief of 25% payable towards the cost of production, bringing it in-line with TV tax relief. This means a British film costing £40m will receive an additional £1m towards productions costs from the change.

The regime has already supported the production of blockbuster titles such as The Theory of Everything, Gravity and Avengers: Age of Ultron (pictured).

Announcing the scheme on the set of Agatha Raisin, a new British TV series being filmed in Wiltshire that is benefiting from the government’s high-end TV tax relief, George Osborne said: “These tax credits, that support both film and TV production, create around £2bn worth of business for Britain.

“That’s many thousands of jobs and lots of different industries, not just acting but film-making and costume design and set design.

“All of those things are really brilliant jobs supported by this brilliant industry. It’s also a great advert for the country.”

The scheme will be backdated to apply from April 2015.

British Film Institute CEO Amanda Nevill said: “The film tax relief is a key ingredient in the UK’s winning combination of outstanding filmmaking talent and crews, world-leading studios and facilities, and iconic locations.

“It keeps us competitive on the world stage, and helps grow our economy and create jobs at home.”

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