I’ve posted before about how the UK Tax Laws were being removed forcing movies to move production to other countries which had more attractive benefits, well now it looks like the Government have taken a U turn and are set to introduce new benefits.
Here’s the history from previous stories:
UK tax laws change and threaten film production
UK Film Production drops rapidly
Ray Winstone fears for UK film industry
UK Film Industry earns millions
Now, from the BBC, the news is that despite scrapping the previous Tax laws which gave money back to productions, the Government are creating new ones. Laws with rules to increase returns to typically British movies.
A tax credit for producers making films in the UK has been announced by the government, with 16% relief for large budget films and 20% for small budgets…
…A “culturally British” test which will help determine if films qualify for tax relief was also announced.
It will have a points system measuring where the film is based, where its crew are from and whether it is set in the UK or has British characters.
Currently the tax benefits go to third parties, not directly to the Producers, something that would change with these new laws. However, despite all this testing and scoring, the decision for each movie actually remains with the UK Treasury, that bunch of Civil Servants who look after the Taxes. Why am I hugely suspicious of that?
Typical questions are:
Is the production and filming based in the UK?
Do the cast, crew and/or producers come from the EEA (European Economic Area)?
Is the film set in the UK, are the characters British?
Interestingly although this would provide tax breaks for Mrs Henderson Presents or Pride and Prejudice it would also allow Batman Begins to qualify because it filmed in the UK with UK talents. Yet, surprisingly, Bond won’t because it’s off filming in Prague, no matter how much of the rest is British. That, I think, is where the Treasury come in and then start deciding on a case by case basis which films do qualify and which don’t, making the test a bit of a farce really. I mean if I’m making a movie and any part of it is based in the UK I’d be straight in with an application and then appeal to the Treasury…
I don’t know, some of it is good news for the UK Industry, and some of it isn’t enough for me. What do you think?
