Writing in Screen International, Adam
Minns reports that the UK government has started cracking down on unnecessarily high fees for producers of
British films. This month the Department for Culture, Media & Sport (DCMS) published new
guidelines paying special scrutiny to producer fees amounting to more than 10% of the production budget. While not
banning them explicitly, additional attention will be paid and the DCMS will require further proof that the higher
costs are directly related to the production.
According to Screen, the new regs are aimed at cracking down on films that are qualifying as British productions and accessing British tax relief by making payments to local producers or financiers, thereby qualifying the whole budget for tax relief.
British film industry insiders have encouraged the DCMS to act cautiously, lest they hurt legitimate productions.
This follows on crackdowns in minimum percentages that must be spent by co-productions with four European countries. In April the DCMS raised the minimum a co-production with France, Italy, Denmark and Iceland must spend in the UK to 40% of their budget from the previous 30%.