Tax credit equals equity for UK producers

Home-grown indie producers to receive tax credit as equity stake

May 16 2007

Independent film producers in the UK have reason to rejoice, after big hitters UK Film Council, FilmFour and BBC Films announced that the UK tax credit would now be used to give producers an 'equity stake' in the films the companies invest in.

The bold move is the product of months of negotiating between the three companies and trade body PACT, and is intended to insure that British talent is supported and rewarded with a stake equivalent to 10-18% of the given film's budget.

'BBC Films is really reliant on the talent and competence of British producers. We have a great, great community of producers, and for everyone's sake we really need them to flourish,' explained head of BBC Films, David M Thompson.

'We still have to make our numbers add up, but this is a big shift in attitude and approach from the old sale and leaseback days where the tax subsidy was used solely to the benefit of the financiers to reduce their investment,' added UK Film Council chief executive John Woodward. 'For the UK Film Council this is part of an ongoing attempt to get sustainability into the UK production sector.'

• 
•