In yesterday’s Budget, George Osborne confirmed that the European Commission has approved the proposed extension of the UK film tax credit announced in his 2013 Autumn Statement. The changes are due to take effect from April of this year (further details can be found here).
Additionally, details were unveiled about the proposed new theatre tax relief which will follow a similar formula to the existing UK film and TV tax credits. The new tax credit, which will form part of the Finance Bill 2014 and take effect from 1 September 2014, will entitle qualifying “touring” productions to a maximum of 25%, and all other qualifying productions to a maximum of 20%, relief on their qualifying expenditure.
Finally, subject to state aid approval, the Chancellor announced an extension of the long awaited video games tax credit to cover relief for expenditure incurred in connection with goods and services provided from within the EEA. A proposed cap on subcontracting by video games developers of £1 million per game was also introduced. It is hoped that these proposed amendments may help to finally push the approval of the video games tax credit through the state aid approval process, where it has been since April last year.