Producers to receive rebate of up to 25%
LONDON — Tax breaks for qualifying high-end U.K. TV drama and animation will mean a rebate for up to 25% for producers.
Draft legislation is expected next week as the details were confirmed in Blighty’s mini budget announced Wednesday by Chancellor of the Exchequer George Osborne.
The tax relief was announced in June and will operate in a similar way to film tax credits.
What is unclear at this stage is high how the threshold for qualifying shows will be set.
A £1 million ($1.6 million) threshold per episode has been widely discussed, but the Treasury is still to reveal the amount at which tax credits will kick in.
More will become clear when draft legislation is unveiled Dec. 11.
This will be followed by a consultation with the move due to become law in April 2013.
The CEO of U.K. producers’ lobby group John McVay said the 25% rebate was a “very good number.”
He added: “We’re really pleased the government has listened carefully to the industry.”
The U.K. games industry will also benefit from the new tax breaks.
The credits are designed to encourage British programmakers to shoot their productions in the U.K.