TV firms need to start planning for tax relief now
Editor ©RapidTVNews | 19-06-2012
UK TV and broadcasting firms need to know the value of the proposed UK tax reliefs as soon as possible to start building it into their planning processes, a new document from management consultant Deloitte is advising.
In March 2012, Chancellor George Osborne announced an intention to introduce a new TV tax incentive that will bring the production of high-end British drama back to the UK. Some analysts have estimated that the new TV tax incentive will boost jobs, growth and the UK economy by £1 billion per year.
Those engaged in the production of TV programming, video gaming and animation have been granted a new tax credit that will likely apply similar principles to those operating in the UK’s current film tax credit regime.
The UK government has now published a consultation document on proposed corporation tax reliefs for the animation, high-end television and video games industry, which was announced in the Budget. Subject to EU State Aid approval, the reliefs are expected to apply from 1 April 2013. Yet Deloitte is advising firms to make their plans now in order to cash in on the reliefs.
“The aim of the proposed relief to support a sustainable creative industry with a world class skills and talent base in the UK will be welcomed by the industry,” commented Rachel Austin, Deloitte tax director. “However, given the long lead time for productions in these sectors, companies need to know the value of the proposed reliefs as soon as possible to start building it into their planning processes. If the Government sets the rate of relief at the right level, the proposals will increase the UK’s competitiveness in these sectors encouraging additional investment in the UK and discouraging UK companies from producing culturally British content in countries that already offer incentives such as Ireland, Hungary and France.”
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