UK Looks at Tax Credits for Entertainment Projects
December 6, 2012

UK Looks at Tax Credits for Entertainment Projects

The UK is coming up with some creative incentives to keep entertainment projects such as films, animations, video games, TV shows, and more within the country's borders.

According to published figures, the television, animation, and gaming industries employ approximately 150,000 people. While some companies and productions remain rooted on English soil for now, some have moved elsewhere to maintain a competitive edge. Elsewhere where the lure of generous subsidies is too good to pass up in this period when studios are struggling to keep their doors open.

To counter this problem, tax breaks were announced recently that will give the creative companies more freedom and will enable them to better compete internationally. As a result, the UK will be able to maintain its talent pool and its position as a leader in animation, video games, and high-quality television.

UK Chancellor George Osborne in his recent budget speech introduced the tax break of 25 percent to encourage development in the animation and game segments of the entertainment industry. The incentive would also pertain to high-value drama, like the hit Downton Abbey.

Presently the film industry offers a 20 to 25 percent break on projects filmed in the UK. If approved, the other sectors would enjoy similar status.