Tax Incentives Welcomed

North West Vision Welcomes New Tax Relief System for British Film Industry

New film tax relief system will make the UK an extremely attractive place to make films supporting a consistent flow of British films to audiences worldwide.

North West Vision has welcomed the Government's new tax relief system for the British film industry, which will help to consolidate its position as the most important film industry in the world after the US.

In today's Budget report, the Chancellor of the Exchequer confirmed the Pre-Budget announcement of a new tax relief system replacing Section 42 and Section 48 from 1st April.

The new tax relief system will mean:

• on low budget films (with production budgets up to £20 million), the tax credit level will be 20% 2;
• on higher budget films (with production budgets of £20 million and above), the tax credit level will be 16% 3;
• the level of tax credit applies to the expenditure within the UK in order to be EU State Aid compliant 4;
• the lowering of the minimum UK expenditure threshold from the proposed 40% to 25% allowing more films to qualify for tax relief.
  

Alice Morrison, CEO of North West Vision: said:

"Today's announcement by the Chancellor is fantastic news for the Film Industry in Britain and in the Northwest and makes the UK and the an attractive place to make films. It provides the certainty the industry needs to operate and will help the UK consolidate its position as the most important film industry in the world after the US."

In 2005 thanks to home grown films such as Harry Potter and the Goblet of Fire, Charlie and the Chocolate Factory and Wallace and Gromit: The Curse of the Were-Rabbit, Pride and Prejudice and Valiant audiences boosted the share of British films at the UK box office to 34%, compared to 23% in 2004, the highest figure in 10 years.