Film Tax Credits in the UK will become a full 25% on qualifying expenditure for all films, subject to EU approval, after George Osborne’s last budget of this Parliament.
These credits, claimable in cash are an incentive to production in the UK.
Hitherto, the 25% Tax Credit had been restricted by other limiting rules, which had the effect of maximising any claim at 20% of the total spend, less for bigger budget films’, explained Dave Morrison of Entertainment Accountants Nyman Libson Paul. ‘From now, all films will be able to claim a full 25% on qualifying expenditure’.
Meanwhile High End TV productions, will only need to spend 10% of their budget incurred in the UK to claim TV Tax Credits on their UK expenditure. Previously only productions incurring 25% of the total spend could claim on that spend.
‘These measures are a good response to a competitive international marketplace for film and TV production and should help keep the UK in its world class position’ Morrison added.