Sale-and-leaseback films exempt from new tax rules
Following the upheaval caused by the government’s March 2 announcement that it would eliminate tax funds that been vital to recent models of UK film financing (see article) and the subsequent abolition of sale-and-leaseback schemes, which have been crucial in creating instant capital for film production (see article), the government yesterday clarified that sale-and-leaseback films will ultimately be exempt from last Friday’s tax avoidance announcement.
Commenting on the update, John Woodward, CEO of the UK Film Council, said: “This clarification is great news and welcome reassurance for the film industry. The government has moved really fast to put an end to four days of uncertainty that a number of films would lose their funding under sale and leaseback arrangements. Confidence is now restored across the industry.”
For more information please see the HM Revenue & Customs brief on the restriction of film related tax losses.
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