Film tax relief – summary
HMRC have published a summary of the take-up, cost and delivery of film tax relief from the introduction of the tax relief in January 2007 through to the end of the 2009-10 tax year.
In order to qualify for relief, films must be intended to be shown commercially in cinemas and at least 25% of the total production costs must relate to activities in the UK. The relief was put in place to help the British film industry survive.
Film tax relief 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.
The headline figures covered in the summary are as follows:
- 720 film productions have become eligible for the new film tax relief
- Of these, 455 film productions have made 700 claims, for a total £340 million.
- All but 15 of the payments were made within 6 months of receiving the claim.
HMRC have a specialist office which deals with the majority of claims for film tax relief. The main exception being businesses which are dealt with by the Large Business Service unit. The specialist office which is based in Manchester can be contacted on 0161 288 6310.