The Economic Impact of the UK Film Industry - BFI - British Film ...

4.4. Direct tax revenues
(a) Contribution to Exchequer
Economic Contribution of the UK Film Industry
July 2007
The core UK film industry is estimated to have contributed around £436 million to the Exchequer in 2006
(gross of tax relief and other fiscal support). This is equivalent to nearly 30% of value added in the core
UK film industry. Almost half of the tax revenues raised for the Exchequer arise from corporation tax
payments (gross of tax relief); most of the remainder is from income taxes and national insurance.
Table 4-4: Estimates of direct tax contribution from the core UK film industry, 2006
Tax revenues
(£ million)
Income tax 93
National insurance – employee 48
National insurance – employer 39
Value added tax 29
Corporation tax (gross 9 ) 212
Withholding tax 15
Total 436
Source: HM Revenue & Customs; ONS; Oxford Economics estimates
(b) Fiscal support to the core UK film industry
The core UK film industry receives funding from both central and local government, from the National
Lottery and from other public sector organisations. DCMS is the government department with overall
responsibility for setting policy in respect of Lottery and grant-in-aid support for film in the UK. The UK
Film Council is responsible for the disbursement of the majority of DCMS funding for film, with the
exception of funding for the National Film and Television School.
The UK Film Council was established by the government in 2000 as its strategic agency for developing
the film industry and film culture in the UK. The UK Film Council’s aim is to deliver lasting benefits to the
industry and the public alike through:
• Creativity - encouraging the development of new talent, skills, and creative and technological
innovation in UK film and assisting new and established film-makers to produce successful and
distinctive British films;
• Enterprise – supporting the creation and growth of sustainable businesses in the film sector,
providing access to finance and helping the core UK film industry compete successfully in the
domestic and global marketplace;
• Imagination - promoting education and an appreciation and enjoyment of cinema by giving UK
9 Corporation tax (gross) is equal to the corporation tax liability without the government tax relief given under Section
42/48. The Corporation tax (net) figure is £35 million based on the gross figure (ie £105 million) minus that given in film
tax relief worth £70 million. See Appendix for detailed discussion.
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