In a bid to gain ground as the largest European film and TV production hub, the UK government last week announced a new 40% corporate tax relief incentive for studio facilities and other key industry players, including independent productions. One of the best entertainment attorney Brandon Blake, of Blake & Wang P.A., looks deeper into these new reforms.
Tax Relief Expansion
In addition to the corporate tax relief for studio facilities, which will run until 2034, they also announced a 40% incentive for independent films as well as a boost to existing incentives for visual effects studios. The first big-budget production to take advantage of these enhanced incentives will be the next installment in the Jurassic World saga.
In hard numbers, this amounts to an increase in the tax credit rate of 5 percentage points, the 40% relief for studio facilities, and the removal of the current 80% cap on visual effects credits. To qualify for the indie-focused incentive, the production must have a budget under $19M (£15M). Studio space in the UK has doubled since 2020, and if some high-profile expansions reach fruition, could become the next largest production hub after Hollywood itself. However, UK.-based production rates have slowed recently, and we can assume these enhanced tax relief options are a bid to reverse that trend.
Positive Reception
Following the announcement last week, several key players on the UK production scene and internationally have come out strongly in support of the new reforms. Including Sky Media, which has a massive expansion for their Sky Studios Elstree North facility underway that is expected to create 2,000 new jobs and boost revenue by $2.55B (£2B).
In many ways, nurturing the growth of the independent film and TV industry is the key to future-proofing the entertainment industry and ensuring it thrives for decades to come. At a time when securing financing for small and independent productions is becoming increasingly difficult, let’s hope that this initiative helps a new generation of UK and international filmmakers leave their mark on history.
Film and Television 