“The improvements to the existing film tax reliefs announced today are great news for the UK which is recognised as a world leader in the field. These measures should help the British film industry grow, prosper and remain competitive on the international stage.
“The specific measures announced today include an ambition to make the film industry tax reliefs more generous with a number of steps proposed, including modernising the cultural test. In addition, the Chancellor wants to ensure that there is additional support for wider film production and, specifically, visual effects following a Treasury consultation on this earlier in 2013. We should hear the Treasury’s conclusions on this in the near future.
“A consultation will be issued early in the New Year, to consider scope for tax relief for the theatre sector. Given that other creative sectors already benefit from tax breaks, thespians around the country will be hoping to be treated similarly.”
Details of measures announced today
The Chancellor has announced a number of intended measures for the film industry, including:
- From April 2014, relief available at 25% on first £20m of qualifying production expenditure and 20% thereafter, for small and large budget films. This is subject to State Aid approval
- the minimum UK expenditure requirement for film tax relief will be reduced from 25% to 10%
- modernisation of the cultural test
- support for visual effects and wider film production
The Chancellor has also advised that a consultation will be launched early in 2014, to consider scope for tax relief for commercial theatre productions and theatres investing in new works/touring productions to regional theatres.
Please note that, at this time, little further detail is available.
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