Government outlines TV tax relief ? ?

Dramas, comedies and documentaries with a budget of more than a million pounds an hour will be eligible to receive UK tax breaks under new laws laid out by the government.

The Treasury unveiled draft legislation for the Finance Bill 2013, explaining the kind of productions that will be eligible for tax relief and how the relief will work.

It believes that 50 independent production companies and up to 100 animation producers will benefit from the scheme, which will be modelled on the successful film tax relief scheme, and be applicable from April 2013 to shows produced in the UK.

The tax relief will be worth up to 25% of a budget.

The high-end television tax relief will be targeted at drama, comedy and documentaries with a budget of ?1m or more per hour. It will exclude specific genres, including discussion shows, news or current affairs, quiz and panel shows.

It will be applicable to shows with a slot time ? instead of a running time ? of one hour, excluding shows with a running time below 30 minutes.

The government said that it had included high-end documentaries in the list of genres ?on the basis of views and evidence received.? However, it?s unlikely that many documentary makers will take advantage of the relief as very few ?1m TV docs are produced in the UK.

The ?1m threshold will be limited to costs incurred directly on production. The Government will, however, consider how to legislate to allow a production fee of no more than 10 per cent of the pre-production budget to count towards the threshold. It will also allow ?early stage costs? that are integral to the production process to be eligible for relief.

Additionally, all co-productions made under an internationally agreed co-production treaty will be eligible for relief.

The Treasury estimates that the cost to the Exchequer of the high-end television tax relief will be ?5m in 2013/14, rising to ?70m by 2017/18.

The draft legislation has been welcomed by the industry, with Pact?s Chief Executive John McVay, saying: ?This is fantastic news for independent TV producers in the UK.? It?s very encouraging that government has recognised the contribution that this creative sector brings to the UK economy.

?Productions will be persuaded back to the UK and they may be retained here ? it?s good for growth, jobs and the exchequer.

?This legislation covers mixed content productions within the scope of the animation tax relief ? it means well known programmes such as Waybuloo, where acting and animation are combined, would benefit.

?The White Paper explicitly includes the internet within the definition of made-for-television.? This could also be a major boost for business from the growing number web-based commissioners.?

Consultation on draft legislation for Finance Bill 2013: http://www.hm-treasury.gov.uk/finance_bill_2013_consultation.htm

Source: http://www.lizardfish.co.uk/government-outlines-tv-tax-relief/

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