UK Film Council welcomes new tax relief system for British film industry

The UK Film Council has welcomed the Government’s new tax relief system for the British film industry, which it says will help to consolidate its position as the most important film industry in the world after the US.
In his Budget report, the Chancellor of the Exchequer confirmed the Pre-Budget announcement of a new tax relief system replacing Section 42 and Section 48 from April 1.
The new tax relief system will mean: on low budget films (with production budgets up to £20 million,) the tax credit level will be 20%; on higher budget films (with production budgets of £20 million and above,) the tax credit level will be 16%; the level of tax credit applies to the expenditure within the UK in order to be EU State Aid compliant 4; and the lowering of the minimum UK expenditure threshold from the proposed 40% to 25% allowing more films to qualify for tax relief.
John Woodward, Chief Executive Officer of the UK Film Council, said: “Today’s announcement by the Chancellor is good news for the British film industry and makes the UK an attractive place to make films. It provides the certainty the industry needs to operate and will help the UK consolidate its position as the most important film industry in the world after the US.
“The lowering of the minimum UK expenditure threshold from the proposed 40% to 25% is great news as more films will be in a position to qualify for tax relief.
“Audiences in the UK and abroad love British films, and today’s announcement will help to support a consistent flow of British films for the enjoyment of all.”
(GB)