Relief for film and TV chiefs as Chancellor retreats from plan to raise threshold for tax breaks
Film and TV chiefs are relieved the Chancellor retreated from proposed changes that could have seen Britain’s favourite shows disappear.
They feared Jeremy Hunt would increase the threshold at which shows qualify for tax breaks, hitting investment in UK productions.
Productions must cost £1million per hour to qualify for a rebate of 25 per cent and industry bodies and broadcasters, including the BBC, ITV and Channel 4, urged Hunt to avoid an increase.
Tax drama: Film and TV productions must cost £1m per hour to qualify for a rebate of 25%. A rise would hit shows such as Call the Midwife (pictured)
A rise would hit shows such as Call the Midwife. But Hunt said he would maintain this £1million level, and reform the film and TV relief system, providing a rise in the tax breaks.
John McVay, of Pact, the UK’s main TV production trade body, said: ‘We are very pleased the Government has listened.’
Adrian Wootton, at the British Film Commission, said that it was ‘real recognition’ of the industry’s growth and opportunity.
‘With increasingly intense international competition, we’re delighted to welcome this package, futureproofing the UK’s film, high-end TV and animation tax credits,’ he said.