Disappointment Expressed At Film Financing Tax Changes In UK Pre-Budget Report
In a statement released following Gordon Brown's delivery of his pre-Budget
report on Thursday, Harry Hicks, head of the Film and TV department of professional
services group, Chiltern Plc expressed disappointment at the tax measures affecting
film financing unveiled by the Chancellor, likening them to using a "sledgehammer
to crack a nut". Mr Hicks announced that he was particularly surprised at the decision to clamp
down on double claims for tax relief on the same film, observing that although
the government recently expressed its displeasure at illegitimate 'double dipping':
"the Revenue confirmed that they have no objection to two claims for relief
so long as there is a recognition of income within the transactions". Other new measures contained within the pre-Budget report included the restriction
of film tax deferral to 15 years, the extension of sale and leaseback anti-exit
rules for companies that have accessed film tax relief, and the restriction
of loss relief for individuals in partnership. All of the changes in film financing tax law unveiled by Mr Brown last week
are intended to be effective from December 2, 2004. A comprehensive report in our tax shelters series describing tax-effective regimes for film production in a number of key countries is available in the Tax News Reports Shop at http://www.tax-news.com/reportshop/
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