Film industry calls for tax relief reform in open letter to new PM
Creative sector not-for-profit Creative UK has penned an open letter to the new Prime Minister setting out the sector’s economic priorities and calling for support to grow.
A top priority outlined in the letter is Creative Industries Tax Reliefs. The pre-existing tax reliefs enable the sector to invest in new content and attract overseas investment. Creative UK is calling for two new tax reliefs for music and publishing.
They also call for reforms to the VFX & Animation and Video Games tax reliefs as well as making a case for the continuation of reliefs for museums and galleries, theatres and orchestras.
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On top of this, Creative UK are suggesting these key steps:
- Expanding R&D Tax Relief to reflect the internationally recognised Frascati definition*, aligning the UK with other high-growth economies.
- Cutting VAT from cultural experiences and creative products, including event tickets and audiobooks.
- Applying Business Rate Relief to cultural sites, venues and hubs and removing the VAT applied to historic buildings for maintenance and repair.
- Delivering the Arts Premium promised in the Conservative Party Manifesto and enabling FE and HE to upskill the next generation.
- Establishing a new compact between UK government and freelancers and retaining the UK’s strong Intellectual Property framework.
*The Frascati definition sets out the requirements necessary to make activity qualify as R&D. Namely, it must be novel, creative, uncertain, systematic and transferable and/or reproducible.
The creative industries play an important role in the economy of the South East, particularly in the Thames Valley which has been dubbed the ‘Cine Valley’, reflecting the high number of film and tv studios in the region.
As well as the established Pinewood Studios, home to major TV shows such as Channel 4’s Taskmaster, Shinfield Studios is currently under development in Berkshire and will host high-end TV, streaming and film companies including Disney.
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