alerts & publications
This Year’s Holiday Gifts for the Creative Sector — from the UK GovernmentDecember 6, 2013
Yesterday the UK government announced that, beginning in April 2014, it will increase the film tax relief on high-budget films to 25% (up from 20%) for the first £20 million of qualifying expenditure, subject to state aid approval. Going even further, the government will seek state aid clearance to increase the rate of relief to 25% for all qualifying expenditure beginning in 2015.
The UK government also announced that it will reduce the minimum UK spend requirement for small and large budget films from 25% to 10% to encourage minority co-productions. It will also broaden the film cultural test to include European nationals and to support visual effects and wider film production. We understand the cultural test will be increased to 35 points, 18 of which will be needed to qualify (up from the current standard of 16 out of a possible 32 points). The intention is for these changes to take effect in April 2014, however, the changes are still subject to state aid approval.
We will be keeping on top of the details as they are released so please do get in touch with either Libby Savill (email@example.com) or Sarah Caughey (firstname.lastname@example.org) if you’d like to know more.
This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Libby Savill, an O'Melveny partner licensed to practice law as a Solicitor in the Senior Courts of England and Wales, and Sarah Caughey, an O'Melveny counsel licensed to practice law as a Solicitor in the Senior Courts of England and Wales contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.
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