A higher rate of film tax relief (FTR) for the UK has been given approval by the EU increasing the rate to 25% regardless of budget level for all qualifying core expenditure, for all eligible film productions.
For example, a British film costing £40m will now receive an additional £1m towards production costs.
Previously, FTR applied at a rate of 25% for the first £20m of qualifying expenditure and 20% to amounts thereafter.
The plans were first announced by the government in the March 2015 Budget in attempts to entice more projects like Avengers: Age Of Ultron to shoot in the UK.
Chancellor George Osborne announced the scheme approval, which will be backdated to apply from April 2015, whilst a set visit to a new British TV series which is benefiting from the government’s High End TV tax relief, which provides a tax credit of 25% on qualifying British productions.
The government’s film tax relief has supported almost £8bn of production expenditure since its introduction including films such as Harry Potter. It has supported 222 films in 2014, when £1.4bn was spent on filmmaking in the UK. Other films that have qualified under the cultural test for film tax relief include: World War Z, Skyfall, Paddington, The Imitation Game and The Theory of Everything.
If you would like to find out more about how NLP can help you with creative industry tax reliefs, click here.