Osborne welcomes boost for movies
EU hands tax boost to British film making industry
EU officials have removed state aid restrictions and backed Chancellor George Osborne’s plan to give film and TV productions 25% off their tax costs if they reinvest in their projects.
The change extends tax relief on an entire production of any size Under existing rules the 25% rate only applies to the first £20m of a production’s budget.
Makers of blockbusters such as Gravity, which was made in Britain, are likely to gain the most benefit, although it will be welcomed by those pushing the development of a film production industry in Scotland where more modest budget films are likely to be made.
To qualify for the relief films need to spend a minimum of 10% of the cost in the UK.
Mr Osborne, who proposed the change in his Spring Budget, said the EU’s move would provide a huge boost to an industry worth billions to the British economy.
He said: “These tax credits, that support both film and TV production, create around £2 billion worth of business for Britain.
“That’s many thousands of jobs and lots of different industries, not just acting but film-making and costume design and set design.”
The chief executive of the British Film Institute (BFI), Amanda Nevill, said: “The film tax relief is a key ingredient in the UK’s winning combination of outstanding film-making talent and crews, world-leading studios and facilities, and iconic locations.
“It keeps us competitive on the world stage, and helps grow our economy and create jobs at home.”