The U.K. government’s proposal secures the greenlight from Brussels and will be
put into effect on April 1.

The proposed tax credit system for high end TV, animation and video
games has leapt through the final hoops standing its way and will be in place from
April 1, 2013.

The introduction is designed to help keep the U.K. on the map with Hollywood
studios and high end producers looking to make big budget TV projects — likely to be
budgeted at $1.5 million plus per episode.

The proposals for the credits had to secure state-aid approval by Brussels before the
British government could start implementing the long-awaited tax benefits to
applicants.

The go-ahead from Brussels on the eve of this year’s Mip TV market in Cannes,
should give producers and program-makers a welcome boost ahead of the show that
runs April 8 – 11.

The tax benefits, which have been in the works for about a year and have been
supported by industry groups and personalities, will provide a 25 percent tax break
on qualifying U.K. expenditures.

Budget documents indicate that the British government expects to allocate $7
million (£5 million) to its tax credit system for high end television productions from
April 6, 2013, for the rest of the year.

That will likely grow, according to government forecasts, to $38 million (£25 million)
for 2014 /15, rising to $98 million (£65 million) by 2017/18.

Stephen Bristow, at leading media tax and accountancy specialists Saffery
Champness, described the greenlight from the European Commission for the tax
credits, as “great news.”

Bristow, whose firm has been instrumental in drawing up the framework and
lobbying the government bean counters to implement the system, said it will boost
the sector in two ways.

“In real terms the UK is now going to be able attract more high-end TV production
and animation building businesses and employment,” Bristow said.
The tax credits for high end TV is already tipped by British industry insiders to
attract more and more U.S. productions with British elements to U.K. shores.
It will also avoid recent “runaway” productions that has seen high end projects
produced by British production banners and U.S. partners such as Parade’s End, starring Benedict Cumberbath and Rebecca Hall from BBC Worldwide and HBO
from shooting abroad.

Said Bristow: “The new tax reliefs will be in place from April 1, 2013, giving
production companies just about to start production the confidence to do so,
knowing that they are going to be able to apply for the TV or animation tax relief
providing their productions meet the qualifying criteria.”

The British Film Institute has been tasked by the British government to be the
certification body for the incoming tax credit system.

Adrian Wootton, chief executive of the British Film Commission and Film London
said: “That the TV tax relief is in place just a year after it was announced is testament
to the government’s understanding of how vital the production industries are to the
UK economy in terms of job creation and investment. Building on the success of the
film tax relief, the British Film Commission is already working hard with our
partners both here and in the US to ensure that the UK has as much success in
attracting major international TV production as we do in attracting major
international features.”

Stuart Kemp – Hollywood Reporter