Sky, Pact welcome UK government’s moves on film & UK tax support

Dana Strong (Source: RTS)

Companies including Sky and trade body Pact have welcomed moves by the UK government to introduce a raft of tax proposals for country’s TV & film sector.

Chancellor Jeremy Hunt said that he is to introduce a 40% corporate tax relief for studios that would run until 2034, while increasing the rate of tax credit for visual effects costs across both film and TV.

The move will be accompanied by the removal of the 80% cap on VFX.

An indie movie tax credit scheme is also being introduced from 1 April, which will apply to projects with budgets under £15m ($19m) and which pass a “new British Film Institute test”.

It will apply from 1 April, with producers able to make claims in 2025 for the previous 12 months.

Dana Strong, Sky’s CEO, said: “We’re delighted that the chancellor called ‘cut’ today on TV and film studio business rates, providing vital tax relief to enable the UK’s world-class film and TV production sector to continue to thrive.

“Today’s announcement brings confidence to the sector, unlocking job opportunities whilst providing a stable foundation for the investments of tomorrow in the UK”

Hunt added: “Studio space in the UK has doubled in the last three years and at the current rate of expansion, next year we will be second only to Hollywood globally.”

The move to cut business rates is expected to be worth around $450m and will provide relief to companies ranging from Sky Studios and Pinewood. The government claimed the total package of relief and tax credits would top £1bn, with an additional £10m destined for the National Film & Television School.

UK trade body Pact welcomed the moves, adding: “Both Pact and the BFI believe that the enhanced film tax credit will help strengthen the indigenous film sector’s ability to attract finance and to continue developing key talent which will benefit the wider audiovisual sector.”