Budget news: new tax relief for lower budget films

A new tax relief has been introduced with the aim of “boosting” the indie sector.

This tax relief was introduced by the Chancellor, Jeremy Hunt, in the spring budget and applies to qualifying UK film productions budgeted up to £15m.

To qualify as a “UK production” the film will need to have either a UK writer, UK director, or be certified as an official UK co-production.

The idea behind this introduction is to pull the languishing UK indie film industry out of the obscurity that it risks falling into. The sector is already falling behind that of other countries, such as the United States where funding and investment is more forthcoming.

This tax relief has been welcomed by industry leaders and there is an optimistic outlook regarding the effect of the relief.

The Chairman of the British Film Institute (“BFI”) said that “The government’s new tax credit is a game changer for UK filmmakers, creating jobs and ensuring great British stories continue to be told”.

Additionally, the Chief Executive of BFI has commented “This is a dramatic moment for UK film, and the most significant policy intervention since the 1990s”.

Although the effects of this budget relief may not be immediate, it is likely that they will become more obvious over the next few years.

If you are involved in the production of indie films, or you know those who are, awareness of this tax relief is key – taking legal advice will help you stay one step ahead while keeping an eye on the all-important bottom line.