Budget: Boost for film companies

Under current rules set out in the Finance Act (FA) 2006, firms making films for cinema and TV are affected by their own tax agendas; each film is treated as a separate trade taking into account costs and income from the film. In addition, Schedule 5 of the Act then provides additional tax relief to firms making British cinema movies. However, under new rules set out in the FA 2007, currently awaiting Royal Assent, companies will be able to apply to opt out of these rules and be taxed instead under general rules applying to most companies. HM Revenues & Customs spokesman, David Harris, s...