'Culturally British' films set to receive tax assistance

After a prolonged consultation, the government has decided that new tax reliefs for the production of "culturally British" films are to come into effect in April 2006. The new reliefs offer an enhanced deduction of 50% for films costing less than £20m, and 25% for a budget above that limit. Additionally, producers can surrender losses derived from expenditure that qualifies a production as British in exchange for a payable tax credit. The credit is 30% for films costing up to £20m, and 25% for those costing more. To be classified as "culturally British", at least 40% of production cost...