Department for Culture Media and Sport
Tax relief helps to encourage home-grown UK films and film production and maintains the industry’s creative and technical skills.
HM Treasury provides tax incentives to makers of culturally British films.
Tax relief is available for British qualifying films.
Example of a British film claiming tax relief (PDF 26kb).
For full details visit the HM Revenue and Customs website.
30 September 2007 was the Finance Act 2006 cut-off date for acquiring a film that completed before 1 January 2007 and claiming relief on that acquisition. Acquisition expenditure incurred after that date will not count.
Production expenditure incurred after 31 December 2006 would generally not count either as that would then be an "unfinished" film and would come under the new relief.
Transitional regulations provide that films that were unfinished at 1 January 2007 and fail the new 2007 cultural test remain in the old rules (under the 2006 cultural test) and can continue to claim for production expenditure under S.42.
For these films only, the 30 September 2007 deadline is extended to 31 March 2008. Someone acquiring such a film can claim for any acquisition expenditure incurred before 31 March 2008. This table summarises the position:
|When was the film completed?||When did filming start?||Does it pass the 2007 cultural test?||Does it pass the April 2006 cultural test?||Relief available||Cut-off point for relief on acquisition expenditure|
|before 1/1/07||before 1/4/06||n/a||n/a||S.42 & S.48||30/09/2007|
|before 1/1/07||from 1/4/06 to 31/12/06||n/a||yes||S.42||30/09/2007|
|after 31/12/06||before 1/1/07||no||yes||S.42||31/03/2008|
|after 31/12/06||before 1/1/07||yes||n/a||new relief||n/a|
|after 31/12/06||after 31/12/06||yes||n/a||new relief||n/a|
For further detail on these reliefs, or the previous sale and leaseback scheme please contact HM Revenue and Customs or seek specialist legal or accounting advice.
30 September 2007 was the cut-off date given by the Finance Act 2006 for acquiring a film that completed before 1 January 2007 and claiming relief on that acquisition. Acquisition expenditure incurred after 30 September 2007 does not qualify for tax relief.
i) Films made April to December 2006
Films made entirely between April and December 2006 that pass both the 32-point 2006 cultural test and the "maker test" - apply for certificates directly to DCMS.
ii) Films made before 2007
Films made entirely before 2007, which started filming before April 2006, that pass the old Schedule 1 (which included the 70% tests and the "maker test" and relates to S.42/48 film tax relief) - apply for certificates directly to DCMS.
Application forms and guidance notes are available on request from firstname.lastname@example.org. A hardcopy form is available for all genres of films, which cannot be sent via email but can be posted to you.
Films that had begun principal photography but were unfinished at 1 January 2007, and that fail the 31-point cultural test of 2007, also remain in the rules for the 32-point cultural test of 2006 (without the "maker test") and can continue to claim for production expenditure under S.42 film tax relief.
For these films only, the 30 September 2007 deadline was extended to 31 March 2008. A person acquiring such a film can claim for any acquisition expenditure incurred by then. But an application for a certificate should be made in the first instance to the Certification Unit at the British Film Institute who will check the correct procedure for it.