Relief for film and TV chiefs as Chancellor backs out of plan to raise threshold for tax breaks
Film and TV chiefs are relieved the Chancellor has backed away from proposed changes that could have seen Britain’s favorite shows disappear.
They feared Jeremy Hunt would raise the threshold at which shows can qualify for tax relief, which would hurt investment in UK productions.
Productions must cost £1m per hour to qualify for a 25 per cent discount and industry bodies and broadcasters, including the BBC, ITV and Channel 4, have urged Hunt to avoid a raise.
Tax drama: Film and TV productions must cost £1m per hour to qualify for a 25% discount. A raise would hit shows such as Call the Midwife (pictured)
An increase would affect shows such as Call the Midwife. But Hunt said he would maintain that £1m level and reform the film and TV relief system, including increased tax relief.
John McVay, of Pact, the UK’s leading television production trade body, said: ‘We are very glad the government has listened.
Adrian Wootton of the British Film Commission said it was a “real recognition” of the industry’s growth and opportunities.
“With increasingly intense international competition, we are delighted to welcome this package, which makes the UK film, premium television and animation tax credits permanent,” he said.