Lord Attenborough Appeals To UK Govt To Extend Section 48

by Robert Lee, Tax-News.com, London

16 May 2003

Actor and director Lord Attenborough has urged the UK government not to drop Section 48 tax benefits for British film productions in 2005 fearing it would "wreck" the chances of another 'Notting Hill' or 'Billy Elliot' ever being made in the country again.

Earlier in the month, PACT, a British trade association representing the commercial interests of the independent TV and film industry, warned that the government may not renew Section 48, a tax break introduced in 1997 which allows 100% tax relief on the production costs of British-based films spending up to £15 million, in addition to 100% relief on script development.

"We should try to persuade government that this 'end it in 2005' is very sad. It will wreck the situation because it has been very successful," said the Labour peer to the culture, media and sport commons selct committee recently.

"There is no question whatsoever that the industry cannot succeed without some form of assistance," he continued. "There isn't a country in the world, including the United States, India - they have all in some way or another have major fiscal assistance in terms of operating their industry.

The one thing I am certain of is that until we accept that a form of subsidy, some form or another, whether a tax concession is accepted as a prerequisite for the British film industry, the British film industry will continue to jump and flop and climb up again and flop again," Attenborough told the committee of MPs.

The director said that far from being scrapped, Section 48 should be extended to cover distribution and broadcasting.

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