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EU Approves UK Film Tax Breaks

by Robert Lee, Tax-News.com, London

24 August 2015


The European Commission has granted state aid approval for the UK Government's plans for an expanded 25 percent film tax credit.

In his March 2015 Budget, Chancellor George Osborne announced that he would increase the rate of film tax relief to 25 percent for all qualifying productions. Previously, the rate was 25 percent for the first GBP20m (USD33.3m) of qualifying expenditure, and 20 percent for spending above this threshold. The new rate will be backdated to apply from April 2015.

According to the Government, a film costing GBP40m will now receive an additional GBP1m toward production costs. The tax relief has supported almost GBP8bn of production expenditure since its introduction.

Osborne said: "British-made films are watched and celebrated all over the world - last year alone we saw eight British made films nominated for an Oscar. A key part of our long-term economic plan is supporting our creative industries that contribute billions to the economy and provide millions of jobs. We want to see more films, like Gravity and Avengers: Age of Ultron, made in Britain and that's why we've made our film tax relief even more generous."

British Film Institute (BFI) CEO Amanda Nevill added: "The film tax relief is a key ingredient in the UK's winning combination of outstanding filmmaking 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. We warmly welcome this extension to the tax relief and the Government's continued commitment to the UK's thriving film industry."

TAGS: tax | United Kingdom | tax credits | cultural heritage | tax rates | tax breaks | tax reform | European Union (EU) | Europe

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