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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.


  • 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...

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