Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Where is Narnia?

28 February 2007 / David Oliver
Issue: 4097 / Categories: Comment & Analysis , Admin , Companies
DAVID OLIVER looks at the ins and outs of the new UK film tax credit.

KEY POINTS

  • The new film tax relief is claimed by the producer via its tax return.
  • Four tests have to be satisfied to qualify for relief.
  • Core expenditure that can be relieved.
  • How losses can be used.
  • Restrictions on television films.


AFTER SOME DELAY on 22 November 2006 the European Commission gave state aid clearance to the new UK film tax relief. This means that on 1 January 2007 the long awaited film tax credit came into force.
The new tax credit can deliver to the producer of a qualifying British film a cash rebate worth up to 20% of the core budget of films with qualifying expenditure of £20 million or less. For more expensive films the rebate is potentially 16%. These are meaty savings on a film's...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon