Osborne confirms tax breaks for TV drama
Tax credits for ‘high-end’ TV drama, animation and games have been confirmed in Chancellor George Osborne’s 2012 budget.
TV producers are expected to benefit from a tax break of 25% on productions with budgets of over £1 million per hour from April 2013. The proposed tax breaks are subject to a consultation process and state aid approval.
The decision is designed to boost the UK’s creative industries and comes after a successful campaign from industry lobbies including PACT and Animation UK. Last week, The Walt Disney Company told the Government that it was unlikely to return to the UK unless tax breaks were introduced to create a ‘level playing field’. The US media giant currently has three projects in production with a combined budget of £14.6 million in Ireland, where a credit is in place.
“The tax breaks announced in the Budget reflect the increasing convergence that is taking place in the creative industries, both in terms of distribution and finance," said Dan Brain, NFM's communications manager.
"The UK has always been able to provide the TV industry with a ‘quality’ offering of world class crews and locations. A well regulated tax credit will help to offset some of the costs associated with making TV drama in the country.
“Whilst Northern Film & Media welcomes the news, an important catalyst for film and television production here in the North East has been the presence of regional investment incentives.
“A tax credit combined with the restoration of a regional investment opportunity could further boost the North East as a film and TV production destination.”