The fine-print of new film tax credits was greeted with concern by producers who predicted fresh problems for smaller British productions. The UK Film Council led sighs of relief when the headline figures were announced in the Pre-Budget Report in December.
The new credits of 20 per cent on low-budget films and 16 per cent on films with budgets of £20m plus will replace the Section 42 and Section 48 reliefs from 1 April.
Film-makers yesterday further welcomed the lowering of the minimum UK expenditure threshold from the proposed 40 per cent to 25 per cent, allowing more films to qualify. Butthe credits will apply only to expenditure within the UK.
Andrea Calderwood, vice-chair of the Producers' Alliance for Cinema and Television, feared the new rules would "seriously endanger the prospects for British and European productions, while giving maximum tax advantages to US studio productions".