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There are currently two special tax incentives for film production in the UK. The Government reviewed the current tax incentive provided for small budget films last year and launched its proposals for a replacement in September 2004, based on a new film tax credit model. Following the Government's announced intention in December to review the tax relief used by large budget films, the Chancellor announced at Budget 2005 the Government's intention to reform that relief. The Chancellor also announced the extension of the current tax incentive for small budget films, to allow for formal consultation on draft legislative proposals across the entire film sector.
A consultation document has now been published to consider proposals for a new tax régime to provide incentives for the production of small and large budget films. It clarifies the core aim of tax reliefs as that of promoting the sustainable production of culturally British films.
The consultation:
- clarifies the core aim and objectives for film tax incentives;
- sets out the case for reforming the current reliefs;
- sets out the reform objectives;
- sets out proposals for the new film tax régime.
Comments and responses should be sent by 21 October 2005 to: David Hamp-Adams, Budget and Public Finances, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ, fax: 020 7270 4861, e-mail: films-team@hm-treasury.x.gsi.gov.uk.
Copies of this document may be obtained, from the Public Enquiries Unit, tel: 020 7270 4558, e-mail: public.enquiries@hm-treasury.gov.uk. It can also be downloaded from the Treasury website.
www.hm-treasury.gov.uk
