In his Autumn Statement, chancellor George Osborne announced that he plans to further enhance the existing film tax credit regime.
Reacting to the news, Dave Morrison, an expert on film tax credits at entertainment accountants Nyman Libson Paul, said: “’The proposals make UK locations even more attractive to international films and, in particular, the rate adjustments look good for larger productions considering the UK.
“The longer term prospects of single a 25% rate from 2015, should the Government’s negotiations succeed, will be another good addition to the UK’s credentials as a production base.”
In the Autumn Statement it was announced that “subject to State aid approval, from April 2014 the rate of film tax credit for surrenderable losses will be 25% on the first £20 million of qualifying core expenditure (subject to a maximum of 80% of qualifying core expenditure) and 20% thereafter (to a maximum of 80% qualifying core expenditure). The minimum UK expenditure qualification will also change from 25% to 10%.”
Mr Morrison said film tax credits had been a success story since they were introduced in 2007.