Tax Benefits Shooting Film in the UK

Everyone is looking for a deal, an incentive, a tax credit, something to help them get their project made, be it in the swamps of Louisiana or the wilderness of New Zealand. For those filming in the UK, the incentives currently available there seem quite attractive.

Seed Enterprise Investment Scheme, aka SEIS

The SEIS is designed to help small production investors realize tax savings. £100k or less in shares can have 50% deducted. Additionally if you hold the shares for 3 or more years and have made a profit, that profit will be free from Capital Gains tax. It’s a fantastic way to fund a project and immediately cut your risk in half.

Enterprise Investment Scheme, aka EIS

The EIS is the big brother of the SEIS, and investors can realize tax savings of 30% on amounts up to £1,000,000 in shares. As with the SEIS, if Capital Gains are realized after a minimum of 3 years, they will be tax free. While tax savings are 30% rather than 50%, you can invest up to 10x the amount as SEIS and still receive a tax write-off.

UK Cultural Tax Rebates

For culturally UK films a tax rebate is available for up to 25% of the production budget, up to £20 million, to qualifying production companies. What this means is when the production company files its tax return, it can claim a cash refund of up to 25% of qualifying expenditures (such as pre-production, principal photography, and post-production). Development and marketing are not included as qualifying expenses.

With incentives like these, the UK saw a 35% increase in overall film/tv spending in 2014.

Obviously there is a tremendous amount of information not covered here, and this is not intended as legal or tax advice. Seek out investment counsel or tax professionals before making any financial decisions.

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