Written by new-contact on Jul 3, 2012. Posted in Incentive News

British Film Institute reassures filmmakers on tax credit legitimacy

The British Film Institute (BFI) has reassured filmmakers that the UK’s filming tax credit programme is legitimate. At least one press report in Britain has suggested certain film investment schemes can offer opportunities to mitigate tax, but the BFI says this isn’t the case.

Amanda Nevill is Chief Executive of the BFI: “It is vital we distinguish between Government-approved tax reliefs, such as the Film Tax Relief and the Enterprise Investment Scheme on the one hand, and tax schemes which have nothing to do with those statutory reliefs and just happen to use film as a vehicle for minimising the tax contributions of individuals, on the other.

It is vital we distinguish between Government-approved tax reliefs ... and tax schemes which have nothing to do with those statutory reliefs.

Amanda Nevill, BFI

“Such a distinction is crucial to ensure we don’t accidentally damage one of Britain’s growing industries and a leading centre for filmmaking in the world.”

Legal tax avoidance schemes used by British citizens have been under the microscope in the UK press since comedian Jimmy Carr admitted to having used one. The BFI clearly recognises the potential damage that could be done if international filmmakers misinterpret the situation and the organisation will be hoping this puts an end to any uncertainty.