Film tax relief changes
There are special tax rules applicable for Film Production Companies (FPC) that produce films, whether or not they are intended for release in the cinema.
Certain films qualify for Film Tax Relief (FTR) which can increase the amount of expenditure that is allowable as a deduction for tax purposes or, if the company makes a loss, can be surrendered for a payable tax credit. In order to qualify for relief the film must be British and at least 25% of the costs must be spent on UK qualifying production expenditure.
The FPC producing a British film can apply for an interim certificate that the film is British. Qualification is administered by the UK Film Council (UKFC). HMRC have updated their guidance to include information on interim and final certificates issued by UKFC. An FPC cannot make a claim without either an interim or final certificate.