Introduction:
UK Film Tax Relief
UK Film Tax Relief
While investing in both Film and TV development and production internationally, Hatton & Berkeley also provide professional and effective UK film tax relief consultation to filmmakers as well as dealing with all claim processes and qualification acquisition via the cultural test.
Allowing Production Companies to recoup a sizable percentage of core UK production spend, facilitating the growth of the British film industry and allowing more production companies to explore and create interesting films.
What is UK Film Tax Relief?
The UK Film Tax Relief (FTR) allows all qualified British films, regardless of budget level, to claim a payable cash rebate on up to 25% of the film’s UK core expenditure.
The Tax Relief is capped at 80% of the Core Expenditure.
A minimum of 10% of all costs must be spent on UK core production expenditure.
In order to be eligible for Tax Relief, the film must pass the British cultural test or qualify as a co-production.
The Film must be intended for theatrical release and provide evidence of this intent.
There is no cap on the amount which can be claimed
What is the Cultural Test?
In order for a film to be eligible for the Film Tax Relief (FTR), it must qualify as British.
The Cultural Test will determine whether a film matches the required criteria and then pass qualification.
The introduction of this qualification is to encourage film production companies at home and abroad to use British talent, expertise and resources in the making of their films.
In obtaining qualification as a British film, the project then becomes eligible for FTR and therefore creates incentive.
How is this different from the
current Film Tax Relief?
Legislative changes in 2015 allow for rights holders to recover monies on financial loss. Prior to this date, there were two separate rates of relief, limited budget films (under £20m) had a rate of enhancement of 100% and a payable credit rate of 25%. All other films had a rate of enhancement of 80% and a payable credit rate of 20%.
Now all films may apply for 80% of core production costs with a payable credit rate of 25%.
Application Checklist
All Producers must supply the following;
UK registered production company (Ltd Co).
Producing a film intended for theatrical release in the UK.
Core' expenditure, which includes expenditure on Pre-Production, Principal Photography, and Post-Production, but would exclude any expenditure outside of the production process.
Closed their accounts (make the Film Tax Relief claim on the back of the closed accounts that can go back 2 years).