TV Tax Credit System Gets the Green Light
3 April 2013
The UK government’s proposed tax relief system for high-end television and animation have been approved by European Union authorities and instated on 1 April 2013. The British Film Commission (BFC) welcomes the measure which ultimately aims to make the UK more attractive to international investment.
On the back of the tax relief for high-end television, the BFC has been tasked to promote the new fiscal incentive internationally. Through a strategic partnership with UK Trade and Investment, the BFC will work with the industry to secure new productions to the UK and has a number of events and initiatives planned to promote the UK offer.
The system is designed to allow the UK to be globally competitive for big budget international TV projects and also to ensure domestic productions are shot in the UK. Projects eligible for the tax relief, which will provide a 25 percent tax break on qualifying UK expenditures, must have a minimum core expenditure of £1 million per broadcast hour.
Initially announced during 2011′s budget and followed by an industry consultation, the proposals for the tax relief had to secure state-aid approval from Brussels before the tax benefits could be implemented.
“That the TV tax relief is in place just a year after it was announced is a testament to the government’s understanding of how vital the production industries are to the UK economy in terms of job creation and investment,” says Adrian Wootton, chief executive of the British Film Commission and Film London. “Building on the success of the film tax relief, the British Film Commission is already working hard with our partners both here and in the U.S. to ensure that the U.K. has as much success in attracting major international TV production as we do in attracting major international features.”
The BFC, responsible for maximising and supporting the production of film and high-end television in the UK, has been integral to the UK’s success in attracting inward investment. New support for the TV, animation and games industries further enhances the UK offer, making it even more appealing to international investment and allowing the BFC to build on its previous success in securing projects to shoot and carry out post-production in the UK.