Tax boost for UK films
Chancellor of the Exchequer George Osborne has announced that a new higher rate of UK film tax relief has been given the go ahead.
Under the new plans the UK's £1.4 billion film industry will receive a tax credit of 25% on all qualifying expenditure bringing it in-line with TV tax relief. This means a British film costing £40 million will receive an additional £1 million towards productions costs from the change. The film scheme will be backdated to apply from April 2015.
The UK government already provides a tax credit of 25% on qualifying British TV productions.
Chancellor of the Exchequer George Osborne said: "British made films are watched and celebrated all over the world - last year alone we saw eight British made films nominated for an Oscar.
"A key part of our long term economic plan is supporting our creative industries that contribute billions to the economy and provide millions of jobs.
"We want to see more films like 'Gravity' and 'Avengers: Age of Ultron' made in Britain and that’s why we’ve made our film tax relief even more generous."
British Film Institute (BFI) CEO, Amanda Nevill added: "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."
Pinewood Group plc, the UK film and TV studio group, also welcomed the announcement.
The government’s film tax relief has supported almost £8 billion of production expenditure since its introduction, including films such as the Oscar-winning Gravity, Maleficent and the Harry Potter series.
According to official BFI statistics, 222 UK films started principal photography in 2014, spending £1.4 billion in the UK – an increase from £1.1 billion in 2013 and the highest figure on record
Examples of films that have qualified under the cultural test for UK film tax relief include: Skyfall, World War Z, Paddington, The Theory of Everything, Mr Turner, The Imitation Game, and Harry Potter and the Deathly Hallows.