Relief for film and TV chiefs as chancellor abandons plan to raise tax break threshold
Film and TV chiefs are relieved that the Chancellor has backed out of proposed changes that could have made Britain’s favorite shows disappear.
They feared that Jeremy Hunt would raise the threshold at which shows qualify for tax breaks, affecting investment in British productions.
Productions must cost £1m an hour to qualify for a 25 per cent cut and industry associations and broadcasters including the BBC, ITV and Channel 4 urged Hunt to avoid a raise.
Fiscal Drama: Film and TV productions must cost £1 million an hour to qualify for a 25% discount. An increase would hit shows like Call the Midwife (pictured)
An increase would hit shows like Call the Midwife. But Hunt said he would maintain this £1million level and reform the film and TV deduction system, increasing tax breaks.
John McVay of Pact, the UK’s leading TV production trade association, said: ‘We are very pleased that the government has listened.’
Adrian Wootton of the British Film Commission said it was a ‘genuine recognition’ of the industry’s growth and opportunity.
“With international competition intensifying, we are delighted to welcome this package, which future-proofs UK film, high-end TV and animation tax credits,” he said.