New UK film tax laws

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Hopefully it will, lets get the british film industry back to its heyday.

[Andrew_Swallow]

The British Government is changing the UK tax laws covering film production again.

http://news.bbc.co.uk/1/hi/entertainment/film/4354741.stm

Wednesday, 16 March, 2005, 16:20 GMT

Treasury extends UK film tax aid

Chancellor Gordon Brown says he will introduce tax reliefs to benefit both low- and large-budget British films.

Draft legislation announced last year proposed new tax relief that would fund 20% of production costs for British films with budgets up to ú20 million.

In his Budget speech on Wednesday, Mr Brown said the relief will be available to bigger budget British films as well.

The draft legislation was due to be introduced in July this year, but will now become effective in April 2006.

Under the new model, films with budgets of up to ú20 million will be entitled to government subsidies worth up to ú4 million a film.

The subsidies - which under current legislation go to the third parties who fund the films - would be paid directly to producers on completion.

Producers will receive a 50% tax waiver on their production costs if the film makes a profit and 20% of the budget if it does not.

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Do you think these changes will be any use?