fiverAs we reported last month, the UK's decision to close film-friendly tax loopholes not only shut down production for some films but, more importantly for the national economy, drove new productions into Eastern Europe, where incentives are more welcoming. Not surprisingly, the resulting loss of income has prompted some reconsideration and, yesterday, a new series of incentives were announced.

Most importantly, productions that cost over £20 million will received tax breaks totaling 16% of the movie's total UK budget, while small pictures will get 20% back. In addition to limiting the breaks to that portion of budgets spent in the UK, the new policy contains other qualifiers to ensure that each film getting tax breaks will be either shooting in Britain, hiring British workers, or presenting British themes.

While all this sounds good - at least to a lay-person like myself - the real test will be if productions start to come back from Eastern Europe. We'll keep any eye out for news about where Harry Potter and the Order of the Phoenix will be filmed, as the production was earlier rumored to be fleeing the UK for financial reasons.
categories Movies, Cinematical