UK-certified films in 2013
In 2013, 199 films, with a total production value of £1.2bn were certified as British. In addition, 13 high-end television productions and three animation productions with a combined budget of £65m received final certification in the first full year of the new government tax reliefs for the creative sector.
To access film tax relief (see below), a film must be certified as British. To qualify as British, a film must either pass a cultural test (as specified under schedule 1 of the Films Act 1985) or be certified as a co-production under bilateral international agreements or the European Convention on Cinematographic Co-production.
Film Tax Relief: A Summary
The film tax relief was introduced in January 2007 to promote the sustainable production of UK films. This summary from the UK's HM Revenue & Customs of the take-up, cost and delivery of the relief covers the whole period of operation up to the end of 2012 -13. It is based on information received by 31 May 2013 about claims received and payments made1.
• 1,390 film productions have become eligible to claim the new film tax relief since its inception.
• Of these, 1,050 film productions have made 1,900 claims, for a total £1.1bn. So far 1,700 claims have received payments totalling £995 million.
• 96% of the payments were made within 6 months of receiving the claim.
• Total production expenditure by films claiming the relief was £9.8 billion, of which 72% was incurred in the UK.
• Production expenditure on large-budget films averaged £86.6 million per film, and £2.3 million for limited-budget films.
Claims and payments
• 490 films made just one claim, and 560 made two or more, covering different accounting periods.
• 195 claims, or 10%, were made by large-budget films (those with production budgets of £20m+), and 1,700 were made by limited-budget films.
• Claims by large-budget films totalled £727 million. Claims by limited-budget films totalled £375 million.
• Tax credit payments to large-budget films totalled £662 million, and to limited-budget films, £333 million.
• Payments to large-budget films averaged £4.6 million per claim, and to limited-budget films, £0.17 million.
Timing of claims and payments
• 53% of tax returns with a claim for film tax relief were filed within 6 months of their accounting period end, this proportion being 80% for 2011-12.
• Of the 1,700 payments made, 33% were made within one month of HMRC receiving the return, 79% within two months, and 96% within 6 months.
Note: Claims analysis relates to claims made in respect of Accounting Periods ended by 31 March 2013. Payments analysis relates to payments of these claims made by 31 March 2013. Some figures have been rounded.
Published: 11 February, 2014