There was good news for the British Film industry today with the announcement from Chancellor George Osborne that his enhanced film tax relief bid had been given EU approval giving a further boost to the governments long-term economic plan to further support the UK’s creative industries.
Under the new plans which were first announced in the 2015 spring budget, the British film industry will receive 25% tax credit on all qualifying expenditure bringing it in line with TV tax relief. The higher credit will be backdated to apply from April 2015. Read the full announcement here
Tax breaks for British film productions were first introduced in 2007 but whereas the 25% rate previously only applied to the first £20m of a production's budget, it has now been extended to cover all tax paid on a project regardless of budget and size.
Who can qualify?
The following rules apply in order to gain the UK tax relief:
- The film needs to be British qualifying. It must either pass the cultural test run by the Department for Culture, Media and Sport (DCMS) or qualify as an official co-production
- The film must be intended for theatrical release
- The film, whether a cultural test or co-production film, must spend a minimum of 10% of its budget in the UK
- The Film Production Company (FPC) responsible for the film needs to be within the UK corporation tax net.
Since its inception the film tax credit scheme has supported more than £8billion of film production and supported 222 films alone in 2014.
Bambridge Accountants have a wealth of experience of working with individuals in the creative and entertainment industries. Contact us today on firstname.lastname@example.org or on 0203 3757 9290 if you have any queries about your accounts or taxes or want to talk to us about claiming film or any other creative tax reliefs.