Treasury consults on film tax breaks

The Treasury has published a consultation document on the future of tax incentives for the British film industry.

The consultation, Reform of Film Tax Incentives: Promoting the sustainable production of culturally British films, reflects the Government'’s view that more can be done to encourage effective and sustained investment while providing better value for money for the British taxpayer and the film-going public. The proposed new reliefs are designed to meet their core aim of promoting the sustainable production of culturally British films more effectively while creating an attractive environment for international studios to invest in UK talent and production. They also reflect the need to comply with EU requirements on state aid in relation to the promotion of culture.

UK Film Council Chief Executive Officer John Woodward said the proposals represent a "totally new approach" to tax relief for film.

"The new tax credit system will continue to provide a subsidy for British films but also offers the potential to help build British film businesses by encouraging investment in slates of films rather than single projects."