Leading Film Industry Financier Pulls Out Of UK
Invicta Capital, the leading finance film that found funding for The Da Vinci Code movie is pulling out of the industry because of new tax laws, it has been reported. Closing of tax loopholes has been blamed
A leading finance firm, that channelled an estimated £1.25bn into British films, the London-based company Invicta Capital will not help fund any more films, according to Screen Daily. The closure of a tax loophole that allowed its wealthy clients to offset their film investments against tax has led them to move into other areas.
Chancellor Gordon Brown announced a new tax credit for producers whose films passed a "culturally British" test, in March this year. However, producers' trade association Pact said there was still uncertainty in the industry because the legislation was "highly complex and there are a number of issues that need to be resolved".
A Pact spokesman said: "I think Invicta came to their decision because they don't see the same level of return for their investors under the new regime. It's always disappointing when a leading financier pulls out of funding film, but we hope that in the long term the new tax credit will generate a larger net contribution to the budget of films."