BFC Welcomes Tax Relief Approval

The British Film Commission has welcomed this week's announcement by Chancellor George Osborne that enhancements to the UK's Film Tax Relief have received State Aid Approval.
The enhancements were included in the Chancellor's Budget speech on 19 March and will take effect from 1 April.
Under the new arrangements, film Tax Relief will be available at 25% on the first £20m of qualifying production expenditure and 20% thereafter, for small and large budget films.
The minimum UK expenditure requirement will be reduced from 25% to 10%. This is seen as a means to encourage further investment in the UK and benefit visual effects and wider industry, as well as facilitating UK independent production companies by encouraging minority co-productions where the UK spend is less than 25%.
These changes will be made through the Finance Bill 2014, which is expected to receive Royal Assent towards the end of July.
As well as these financial incentives, the government's 'cultural test' to qualify films for tax relief are to be "modernised". The remit will be expanded to allow for European as well as British culture, in line with other creative content tax reliefs. The test will also include an increase in the points available for principal photography/ special effects/ visual effects and English language.
Changes to the cultural test will be made through secondary legislation, laid after Royal Assent and likely to be in force in the Autumn. Claims for tax relief can then be submitted to HMRC, and backdated to 1 April.
Iain Smith, British Film Commission Chairman and film and television producer, said of the announcement: "The British Film Industry continues to demonstrate its value both in terms of job creation, international investment and creative and technical expertise, as demonstrated by British successes as this year's Academy Awards and BAFTAs. We are delighted by this further recognition of the value of the Creative industries to the British Government."
Adrian Wootton, Chief Executive of the British Film Commission and Film London, added: "The BFC co-ordinated an industry response to the Government consultation on the enhancements to the Tax Relief so we are thrilled that they will be implemented from 1 April. These changes will make the UK's world-class production industries even more attractive and accessible to international and British filmmakers and further build on and expand the UK's business prospects.
"Importantly it will allow the UK's world-class VFX and post production sectors to remain competitive and the BFC will be hosting a group of senior US executives next month to capitalise on the new opportunities. It's also important to note the hugely positive impact of the tax relief changes on the UK's international co-production prospects, opening up opportunities with a wide range of international territories."
www.britishfilmcommission.org.uk
www.filmlondon.org.uk
(IT/JP)