British Film Industry Tax Breaks approved by EU
17th September 2015
Government plans to extend tax breaks for the British film industry have been approved by the EU.
Under the scheme, film production companies can claim tax relief for the costs incurred producing films and this is now regardless of the budget.
It is hoped that this announcement will help attract more blockbuster productions to the UK.
Who does this tax relief apply to?
Your company will be entitled to claim Film Tax Relief on a film if:
• the film passes the “Culturally British” test administered by the British Film Institute
• the film is intended for theatrical release
• at least 10% of the total production costs relate to activities in the UK
• the first day of principal photography took place on or after 1 January 2007
What are the benefits?
• Companies that are eligible for this tax relief can claim up to 80% of the total core expenditure as an additional deduction in computing their taxable profits, thereby reducing their corporation tax bill.
• If the additional deduction creates or increases a tax loss, the company can surrender losses in return for a payable Film Tax Credit.
Author: Luke Thomas, Director - Technology, Media & Innovation Team
Plus Accounting, Chartered Accountants
Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.