Zubin Patel, international tax partner at Deloitte, comments on
the 2012 Budget:
Companies engaged in the production of TV programming, video
gaming and animation will be pleased at the proposed introduction
of a new tax credit for these activities.
It is expected that this new credit will apply similar
principles to those underpinning the UK's current film tax
credit regime. For the film tax credit regime, at least 25% of
total production cost must be incurred in the UK and we expect that
the proposed relief will carry similar or stricter conditions.
It is also likely to apply to productions that commence after
a future date to ensure the relief is effective in influencing
future behaviour rather than subsidise productions that are already
underway.
