U.K. Government to Offer ‘More Generous’ Tax Credits for TV & Film

LONDON: The U.K. government is enhancing the tax credits offered for TV and film, along with expanding support for the video game industry, in a series of measures announced as part of its annual budget statement.

The government has increased the rate of film tax relief to 25 percent for all qualifying expenditure, along with extending the high-end television tax relief by reducing the minimum U.K. expenditure requirement from 25 percent to 10 percent. The reduction in the minimum U.K. expenditure requirement will also apply to the animation tax relief. The changes are set to take effect on or after April 1 or the date of state aid approval.

"Our creative industries are already a huge contributor to the British economy, and today we make our TV and film tax credits more generous," said Chancellor George Osborne. “Britain is a cultural center of the world, and with these tax changes, I am determined we will stay that way."

The government is also planning to enhance its funding of the Skills Investment Fund to expand training and development across film, TV, visual effects, video games and animation. A new Video Games Prototype Fund is being proposed with an initial $5.8 million funding commitment to support the video game business.