UK Increases Tax Incentives for TV, Film, and Videogame IndustryMarc Ehrenbold
With the UK creative industries pumping in an impressive £1.4 billion into the economy in 2014, Chancellor George Osborne announced the increase in tax relief to 25% for film production outfits that spend £20 million or higher, a better incentive than the previous deal.
This gave a 25% tax cut to the initial £20 million, and just 20% on any excess of the qualifying budget.
Production companies for films that do not qualify for the tax relief, however can still get up to a 25% cash rebate just like they have been entitled to in the past.
John Graydon, a partner at Saffery Champness, an accountancy firm, acknowledges the great news as it gives UK film companies a global edge in attracting high-budget films. He adds that films that cost over $100 million to make, producers stand to get $2.5 million in tax relief.
High-budget television productions received their sweet deal as well, with government slashing down the minimum expenditure requirement to 10% previously at 25%.
The government will be also be “modernizing” its standards in judging a TV show or film eligibility for support.
A good number of Hollywood projects benefited from the tax credit. High profile movies such as Guardians of the Galaxy, Thor: The Dark World, all from 2014, were classified as British.