Film body wants 40% tax credit to promote independent productions
Trade body, Pact, is proposing that the Film Tax Credits be extended to 40% for films made in the UK, with a budget of £2-10m.
It wants to stimulate growth in the independent production sector, following a study which showed that the value of the international sales market has slumped by 50% since 2007.
Films within this budget, such as I, Daniel Blake and The King’s Speech, rely heavily on international sales.
“Pact is concerned that there may be structural problems arising in the market that need to be understood and carefully considered by public agencies and Government, and where appropriate interventions to address potential market failure may be needed,” explained Pact’s chief executive, John McVay.
“Given the many strengths that the UK film industry has, and with ongoing support, Pact sees this as an opportunity to position the indigenous UK film industry to take fuller advantage of the opportunities that the global markets present.”
The “structural problems” highlighted by McVay include the disruptive forces of streaming platforms like Amazon and Netflix, as well as competition for audiences and the collapse of local DVD and television markets for international buyers.
Higher budget films, ie those above £10m, are less affected by the changes, but only 90 films in this range were produced between 2007 and 2015 - or 3.4% of total productions.
“The findings of the Report highlight how essential it is for the UK independent film industry to be afforded more opportunity to develop a sustainable and competitive presence in an increasingly competitive market,” added Hakan Kousetta, See-Saw Films.
“By increasing the tax credit to 40%, the British independent film production community will be able to properly capitalise on the wealth of talent this country produces and bring to the world films that really showcase the best this country has to offer.”