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 Variety is reporting that, as previously anticipated here, Disney/Walden Media's new Narnia film Prince Caspian will be able to access the new British tax incentives without shooting in the UK. This is down to changes in the Cultural Criteria which recognises films based on British books with British characters: meeting this is sufficient to qualify as British. To then access up to 20% of their UK expenditure as tax relief Disney will complete the post production and visual effects in the UK, spending at least 25% of the total budget here. For those working in production or at Britian's world class studios,
already struggling to compete because of an expensive pound, the
benefits of the long awaited incentive may seem to be passing them
by. Supporters of the new test, however, say this illustrates how the new scheme has already worked to attract investment - for The Lion The Witch and The Wardrobe visual effects and post production were completed in LA and New Zealand.
From Adam Dawtrey for Variety:
"The Chronicles of Narnia: Prince Caspian," the second movie in Disney
and Walden Media's "Narnia" franchise, will qualify as a British film
under the U.K.'s new cultural test, even though the majority of filming
will take place in the Czech Republic.
That means Disney and Walden
will be able to access tax credits worth 20% of their U.K. expenditure.
They are planning to do most of the post-production and special efforts
work in the U.K., making up a large chunk of the pic's budget.
Execs
at the U.K. Film Council regard this as a positive example of how
Blighty's new system of tax credits will benefit the British film
industry by attracting production expenditure -- in this case f/x work
-- to the U.K.
The first Narnia movie, "The Lion, the Witch and
the Wardrobe," shot largely in New Zealand, could not qualify as a
British film under the old tax rules, abolished in April.
As a
result, the producers did not have any incentive to use British crews
or to spend money in the U.K., even though the franchise is based on a
series of classic British children's books.
"We are pleased to
confirm that 'Prince Caspian' is expected to qualify as a British film
under the government's new cultural points test," Disney said in a
statement. "While the majority of filming will take place outside the
U.K., the majority of the post-production and visual effects, which
constitute a significant part of the overall production budget, will
take place in the U.K."
Under the new system, "Prince Caspian,"
albeit directed by Kiwi Andrew Adamson, will qualify as British largely
because it is based on a British book, with British leading characters
(played by Brit actors) and a British setting. The rules make allowance
for the fact that Narnia is an imaginary place, but one infused with a
British sensibility.
None of these factors counted under the old
tax system, where qualification was based purely on expenditure and,
where relevant, on the terms of co-production treaties.
"The
Lion, the Witch and the Wardrobe" shot in New Zealand and the Czech
Republic and used f/x houses in Los Angeles and New Zealand; it did not
spend anywhere near enough in the U.K. to qualify, and did not fit into
the U.K./N.Z. treaty.
U.K. Film Council insiders suggest the
decision by Disney and Walden to use British f/x for "Prince Caspian"
was partly encouraged by the tax credit, but also reflects the giant
strides the U.K. post houses have taken in creative quality thanks to
their experience working on such pics as the Harry Potter franchise.
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I\'m afraid you have this all back to front. If Caspian can now qualify without shooting in the UK, solely by virtue of \'cultural\' criteria, then tax goes offshore and little is returned by way of employment or investment.
In contrast, it is probable that another Batman (a much more typical Studio import) would not shoot here (unlike before) as it would not qualify, being without UK source material, characters or setting. Go figure.
The new rules are absurd beyond all reasoning. This is as nothing to the crushing effects on small producers and co-productions.
Bizarrely, PACT, UKFC et al seem to have either not noticed or are wifully blind to the consequences of the latest rule revisions.
Happy days!