On 20 August 2015, the EU approved the increase in film tax credit for ‘large’ budget films i.e. with core expenditure of more than £20 million effective from 1 April 2015. The rate of film tax credit is now 25% for all film budgets meaning that a film with UK core expenditure of £20 million will receive an additional £1 million in tax credit under the new rules.
With studio space already limited in the UK, this increase will ensure that the UK remains a top destination for internationally mobile films. George Osbourne stated “A key part of our long-term economic plan is supporting our creative industries that contribute billions to the economy and provide millions of jobs.”
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