Tax Credits for Film Boost Revenues in UK
February 25, 2015 Taxation in UK
LONDON – The tax credits given to large film productions in the UK have now been shown to boost tax revenues, increase employment, and actively draw more productions into the country.
On February 24th the British Film Institute issued a new statement showing that for every GBP 1 of tax relief provided to large scale film production leads to the collection of an additional GBP 2.48 in tax revenues, and a significant boost to production.
Currently the production of a film with a qualifying budget of at least GBP 20 million, will be eligible for a 25 percent rebate on expenditures in the UK up to GBP 20 million, with all further spending qualifying for a 20 percent rebate, under the condition that at least 10 percent of the film’s total production expenditure is in the UK.
In its statement, the British Film Institute indicated that since the inception of the tax credit, in 2007, the government has provided an average of GBP 164 million in credits each year, on an annual production expenditure of GBP 1.136 billion.
It is estimated that if the tax credit were not offered at all, the UK would see a drop of at least GBP 550 million per year in production value.
Photo By: Vancouver Film School