Tax reliefs have helped fuel a “boom” in investment in the television and film industry, a new study has revealed.
The British Film Institute (BFI), which published the research, said tax reliefs across film, high-end television, video games, animated programmes and children’s TV is “empowering unprecedented levels of production in the UK”.
Film Tax Relief is available at 25 per cent of qualifying film expenditure, regardless of budget, making it an attractive investment opportunity for private investors.
In total, its figures show that an estimated £632 million in tax relief seeded £3.16 billion in direct production spend in 2016, representing a 17 per cent increase compared to the year previous.
This created revenues of around £7.9 billion, including £2 billion in tax for the public purse.
Likewise, over the last four years, the tax reliefs available to investors have driven a 63 per cent growth in production spend and a 62 per cent increase in employment across the film, television and digital media industries.
The BFI said these levels of investment “would not take place without the tax reliefs” afforded to investors.
“Tax reliefs play a crucial role in supporting the UK’s competitiveness as a creative destination, attracting international inward investment production in the face of strong global competition. They have also helped lead to a repatriation of high-end TV productions which would otherwise have been made outside the UK,” it said.
“Tax relief supported production is also fuelling further private sector investment with more than £850 million identified spend on facilities across the UK since 2013 to service the growth in production. New and developing studio spaces include Wolf near Cardiff, Pentland in Scotland, Church Fenton in Yorkshire, Belfast’s Harbour Studios, Dagenham in London, Shepperton Studios, Longcross Studios, Elstree Studios and the Littlewoods building in Liverpool.”
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