Film tax relief extended to 2015
14 Nov 2011
The British film industry has welcomed the extension of the film tax relief scheme to 31 December 2015.
The scheme promotes the production of films which are classed as 'culturally British' by the British Film Institute.
Film tax relief is available for the expenses incurred by film production companies on the production of a film intended for theatrical release in commercial cinemas.
To be eligible for the scheme, a film must be certified British either by passing a cultural test, or under an agreed co-production treaty. At least 25% of the total production expenditure must be incurred in the UK, and relief can only be claimed on production expenditure in the UK, up to a maximum 80% of the total budget. Higher rate relief is available for limited-budget films (with a total production expenditure of £20m or less), and those companies not making a profit may be able to surrender the relief for a payable tax credit.
In 2009/10, the scheme provided around £95 million of support to the British film industry.
Ed Vaizey, Culture Minister, said, 'The huge success of British films at the Oscars, the Golden Globes and the BAFTAs this year is clear recognition of our world class talent and creativity. But as a vital creative industry, it also has huge potential for economic growth. Film tax relief is at the heart of our drive to support the production of culturally British films within a sustainable and vibrant industry'.