The Prime Minister has today announced the extension of film tax relief until the end of December 2015.
The Prime Minister has today announced the extension of film tax relief, the Government’s targeted tax break for the British film industry, until the end of December 2015.
The film tax relief scheme promotes the sustainable production of culturally British films and in 2009/10 provided around £95 million of support to the British film industry, supporting over £1 billion of investment in 208 films.
Recent productions certified as British under the cultural test include films such as Brighton Rock, Attack the Block, StreetDance3D, Gnomeo & Juliet, Clash of the Titans, Horrid Henry 3D, Coriolanus and Harry Potter Deathly Hallows (Parts 1 and 2).
Prime Minister, David Cameron said:
I am delighted to announce the extension of film tax relief to the end of 2015, guaranteeing millions of pounds of support for the British film industry. The last year has seen massive success, both at home and abroad, for a whole host of UK films. I look forward to seeing the UK film industry continue to thrive over the coming years, supported by the Government’s film tax relief.
Exchequer Secretary to the Treasury, David Gauke, said:
The UK film industry makes a vital contribution both to the economy and cultural landscape and the Government is committed to supporting it through film tax relief. This scheme, along with the quality of the UK’s infrastructure and high levels of skills, has led to the UK being recognised around the world as an attractive destination for film production.
Film Minister Ed Vaizey said:
The huge success of British films at the Oscars, the Golden Globes and the BAFTAs this year is clear recognition of our world class talent and creativity. But as a vital creative industry, it also has huge potential for economic growth. Film tax relief is at the heart of our drive to support the production of culturally British Films within a sustainable and vibrant industry. I’m delighted that we can give certainty to the industry for the next four years.
Notes for Editors
The extension of film tax relief follows the European Commission’s State Aid approval of the Government’s application to extend the duration of the scheme to 31 December 2015. The design of the scheme remains the same as that previously authorised.
The relief is aimed directly at film production companies for the expenses they incur on the production of a film intended for theatrical release in commercial cinemas. For a film to be eligible for relief, it must be certified as British, either by passing a cultural test or under an agreed co-production treaty, and must incur at least 25% of the total production expenditure in the UK.
Relief can only be claimed on production expenditure in the UK, up to a maximum of 80% of the total budget, and a higher rate of relief is available for limited-budget films (with total production expenditure of £20m or less). Companies not making a profit may be able to surrender the relief for a payable tax credit worth up to 20% of the total budget for a limited-budget film and up to 16% for other films. A higher value of support may be achieved if the relief is used to reduce company tax liabilities.
Certification of films is currently administered by the British Film Institute on behalf of the Department for Culture Media and Sport.
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