Films made in the UK will continue to receive tax breaks, worth around €110 millon a year, British Prime Minister David Cameron announced today. With the scheme extended to 2015, eligible films must be released in the UK, with 25% of their production costs spent in the country. Industry estimates say the system makes the UK up to 40% cheaper for film-makers than the US.
Recent productions assisted by the tax break range from ‘Brighton Rock’ and ‘Coriolanus’ to both parts of ‘Harry Potter and the Deathly Hallows’.
Speaking at the BFI IMAX in London, Prime Minister Cameron said he was “delighted” to announce the extension; "The last year has seen massive success, both at home and abroad, for a whole host of UK films. I look forward to seeing the UK film industry continue to thrive over the coming years, supported by the Government's film tax relief."
The latest James Bond film, ‘Skyfall’, also qualified for the scheme and began shooting last week. Productions with a budget of £20 million (€23.4 million) or less can apply for a 25% rebate on any expenditure deemed eligible for tax relief. This normally includes pre-production, principal photography and post production - but not development or distribution of the film. Movies with a budget of more than £20 million can claim a rebate of 20%.
Culture Minister Ed Vaizey added "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. I'm delighted that we can give certainty to the industry for the next four years."
Josh Berger, President & Managing Director of Warner Bros. Entertainment UK and Spain also welcomed the scheme, saying: "For almost 90 years, Warner Bros. has been investing in UK film production and the UK film industry's outstanding creative talent. In the last year alone, we've produced six major feature films here, released the final film in the UK-produced Harry Potter movie series and committed £100million to create our permanent production home, Warner Bros. Studios Leavesden, which will open in 2012. We welcome the Government's expression of support for the UK film industry through its renewal of the film tax credit."
