LONDON — Films are about to get a boost in Britain — and perhaps Hollywood as
well — as the U.K. considers changes in the tax structure that would double the
amount individual backers can write off, and increase the coin that companies can
invest in tax-free projects by 150%.

The modifications will be part of the revisions to the Enterprise Investment Scheme,
which provides tax breaks to boost economic activity for smaller businesses in the
U.K., with qualifying investors receiving an upfront tax break.

“The interesting thing about EIS is that you no longer have to be carrying on your
activity in the U.K.,” says Olswang tax lawyer Cliona Kirby. “Now, you can trade
internationally. So you can actually fund an American film with British money and
make your movie in the U.S. or wherever you like, and still access the incentive.”

Pending approval from the European Union, the annual amount companies will be
eligible to invest in an EIS scheme is set to increase from £2 million ($3.2 million) to
£5 million ($7.9 million), while the amount an individual will be able to invest will
double from $792,977 to $1.59 million.

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