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

NAME OF
SCHEME
Economic Contribution of the UK Film Industry
TYPE OF TAX
SYSTEM
WHAT IT
SUPPORTS
July 2007
HOW DOES IT WORK?
IRELAND Section 481. Tax allowance. Production. Projects can derive a benefit, net
of all fees, of up to 20% of their
qualifying expenditure. Qualifying
expenditure is based on the cost
of EU cast and crew working in
Ireland, and goods and services
purchased in Ireland, up to a
maximum of 80% of the total
overall budget. There is a ceiling
of $46.8m (€35m) on qualifying
expenditure per project Section
481 benefit is made available to
the production on the first day of
principal photography.
AUSTRALIA Refundable tax
offset; Division
10BA of the Tax
Act.
NEW ZEALAND Large-budget
screen production
grant.
Tax credit (tax
offset).
Tax deduction
(10BA).
Production only. Tax offset: The producer claims
15% (increased from 12.5% on 1
July 2007) of what is spent in
Australia, providing at least
$12.1m (A$15m) is spent and this
represents at least 70% of the
budget. The 70% condition does
not apply if the spend is more
than $40.3m (A$50m). 10BA:
Investors receive a 100% tax
concession on the full amount of
their investment in the year the
film is made. There is, as of 1
July 2007, a new 15% rebate on
qualifying Australian
Post/Digital/VFX (PDV) spend of
more than A$5 million (regardless
of where the project was shot)
Rebate. Production only. The producer claims a 15%
(increased from 12.5% on 16 July
2007) rebate for productions.
The new regime removes the
previous requirement for at least
70% of the production
expenditure to be spent in NZ for
productions between $15 and $50
million. It also allows several
productions costing a minimum of
$3m each to "bundle" to meet the
requirement for qualifying
expenditure of $30 million. And it
adds an incentive to use New
Zealand-based post-production
digital and visual effects services
with qualifying expenditure of
between $3 million and $15
million.
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