Budget Boost For Non-Cinema Producers?
Some producers making films not intended for the cinema, such as TV movies and straight-to-DVD productions may get a boost from Chancellor Gordon Brown's budget, according to Scott Sinclair of IFAonline.
He points out on the IAFonline website, that under current rules set out in the Finance Act (FA) 2006, firms making films for cinema and TV are affected by their own tax agendas; each film is treated as a separate trade taking into account costs and income from the film. After that, Schedule 5 provides extra tax relief to firms making British cinema movies.
New rules set out in the FA 2007, awaiting Royal Assent, mean that companies will be able to apply to opt out of these rules and be taxed instead under general rules applying to most companies.
A Revenue spokesman says he expects the option to be used mostly by companies that are not making productions for the cinema, as they get no extra benefits from Schedule 5.
Full story on IFAonline.co.uk