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Thursday, 4 July, 2002, 16:46 GMT 17:46 UK
Film industry tax relief questioned
Harry Potter: A remarkable UK film successes
The government is under pressure to re-examine the tax breaks given film makers - the day after it ruled out giving the makers of "high-value" TV drama similar tax relief.
Critics have said that the scheme to encourage film makers, by giving 100% tax relief to investors backing film projects is being abused - and glutting the market with commercial duds.
The BBC's Andrew Verity said: "Putting money into film making has become by far the most effective way of keeping money from the tax man. "A growing number of high earners is searching for films to invest in." Now critics say the tax breaks are not working as intended - and should be reformed.
On Thursday MPs will debate new clauses in the Finance Bill which could lead to a tighter definition of what film projects justify. Under the new rules "high-value" TV drama will no longer be eligible tax relief. Cost The Paymaster General, Dawn Primarolo said on Wednesday that the tax relief was provided specifically for the film industry - not drama, game shows, soaps or any of the other productions that had made claims. "The cost and the use made of this relief - even though all in the industry knew it was not intended - over last year and this year rose hugely in terms of the cost to the Exchequer," said Ms Primarolo, during the Budget-enacting Finance Bill's report stage. Ms Primarolo added that evidence showed TV production companies were not subject to the same structural problems and financial risks as film makers. But she said the Government was offering some transitional relief to TV companies, in that drama series costing more than £500,000 an hour to make would be protected if shooting had begun before the end of last month.
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See also:
26 Jun 02Â |Â Film
22 Apr 02Â |Â TV and Radio
05 Feb 02Â |Â Business
24 Dec 01Â |Â Film
07 Mar 01Â |Â Budget 2001
23 Jan 01Â |Â Entertainment
02 May 00Â |Â UK
01 Oct 00Â |Â Entertainment
03 Jan 01Â |Â Entertainment
22 Mar 99Â |Â e-cyclopedia
27 Aug 99Â |Â Entertainment
Internet links:
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