UK Government hits film industry again
The UK Government are getting greedy again. They are restricting budget rules on how individuals offset losses against tax in limited liability partnerships. Now I know that'll turn a lot of you off, but generally speaking they are clamping down on the ability of people to avoid paying tax in their companies.
Well, an indirect result of this is that the film companies are going to suffer along with every other company, and with the film industry in the UK seeing a tiny rise in production, adding something like this now could turn the tide.
According to The Hollywood Reporter the Government are saying that this law needs to be tightened up and is not aimed at the Film Industry.
A U.K. Film Council spokesperson said Friday that the government's move simply reflects a desire to stop investors from avoiding tax rather than to prevent people from making movies...
With such complex structures involved in film financing in the U.K., some observers say the changes could mean that the sudden and immediate introduction of the new limits might leave productions that are about to lens with a giant hole in their budget...
...A spokesman for the U.K. Film Council said that the Inland Revenue move might have as big an impact as the sudden clampdown on tax funds in early 2004, which saw financiers and producers attending the Berlin Film Festival reel from the effects.
Typical that they are making changes and not thinking of all of the implications, or giving with one change and taking with another. Typical. The UK Film Industry is only just starting to pick up, and the concern is that this stops it from continuing to grow.