Source: HM Revenue & Customs | | 07/01/2016
Film tax relief can increase the amount of expenditure that is allowable as a deduction for tax purposes or, if a company makes a loss, can be surrendered for a payable tax credit. In order to qualify for relief, films must be intended to be shown commercially in cinemas and at least 25% of the total production costs must relate to activities in the UK. In addition, the film must be certified as British, either by passing a cultural test or under an agreed co-production treaty.
Qualification is administered by the British Film Institute (BFI) on behalf of the Department for Culture Media and Sport.
HMRC has published a summary of the take-up, cost and delivery of film tax relief from the introduction of the tax relief through to the end of the 2014-15 tax year. The figures show that last year was a record year for independent and big budget international films today with 220 films made in the UK generating over £1 billion worth of direct investment in the UK.
The Chancellor George Osborne, said:
‘I’m delighted that the golden age for British creative industries is going from strength to strength. 2015 was a record year for the film industry and I’m proud that our support for this fast growing sector is securing investment, boosting productions and creating jobs across the UK.’