Finance Act 2015

Finance Act 2015

2015 CHAPTER 11

Introduction

Section 29: Film Tax Relief

Summary

1. This section introduces changes to the existing film tax relief. The rate of payable tax credit will be 25% for all films and the category of ‘limited-budget film’ will be removed. The changes will come into effect on 1 April 2015 or date of state aid approval if later.

Details of the Section

2. Subsection (1) states that Part 15 of Corporation Tax Act (CTA) 2009 is amended.

3. Subsection (2) amends section 1184 to remove the definition of ‘limited budget film’. This means that only a single rate of film tax relief is payable on all films?

4. Subsection (3) amends section 1200(3) to change the rate of enhancement of the additional deduction to 100% for all films.

5. Subsection (4) amends section 1202 to a single rate of 25%.

6. Subsections (5) to (7) make consequential changes to omit references to limited budget films.

7. Subsection (8) states that the amendments made have effect in relation to films whose principal photography commenced before commencement day but are not completed by the commencement day.

8. Subsection (9) specifies that commencement day is specified by Treasury regulations but will not be before 1 April 2015.

Background Note

9. Film tax relief has been successful in supporting investment in the UK film industry. Currently relief is given at a rate of 25% on the first £20m of expenditure and 20% on expenditure thereafter.

10. Subject to State aid approval, from 1 April 2015 (or the date of approval if later) film tax relief will be available for surrenderable losses at a single rate of 25% for all films, providing an incentive to increase investment above £20m of expenditure.