British film industry handed financial boost

Previously the credit meant that the first £20m of qualifying expenditure could claim 25%, and 20% on costs after that.

George Osborne’s plan to give further tax breaks to Britain’s film industry has been given European Union approval.

But the new measures needed to be approved by the EU under rules about how governments can support companies.

“British-made films are watched and celebrated all over the world – a year ago alone we saw eight British-made films nominated for an Oscar”, he said.

Ivan Dunleavy, chief executive of the Pinewood group, which has provided the British facilities for many recent big-budget productions, including Star Wars: The Force Awakens and Avengers: Age of Ultron, echoed the enthusiasm for the enhanced tax credit system.

“A key part of our long term economic plan is supporting our creative industries that contribute billions to the economy and provide millions of jobs”.

The change the film tax relief scheme will affect all projects that started production on or after 1 April 2015.

Since its introduction the relief has supported £8bn of production expenditure, including films such as Gravity, Maleficent and the Harry Potter franchise. “When you couple this with the U.K.’s world-class talent, cutting-edge infrastructure and stunning locations you have a truly unbeatable offer, and one that creates thousands of U.K.jobs and generates billions for the country’s economy”.

With the UK’s studios already packed to the rafters, it’s a good thing that more soundstages are being built as the already lucrative film tax break is being increased. “We warmly welcome this extension to the tax relief and the government’s continued commitment to the UK’s thriving film industry.”

Some 222 films received such support in 2014, according to the UK government.