The UK Government have now announced the details of its new tax credit system that will replace the existing Section 42 and Section 48

The new tax relief system will mean:

" on low budget films (with production budgets up to £20 million), the tax credit level will be 20%;

" on higher budget films (with production budgets of £20 million and above), the tax credit level will be 16%;

" the level of tax credit applies to the expenditure within the UK in order to be EU State Aid compliant;

" the lowering of the minimum UK expenditure threshold from the proposed 40% to 25% allowing more films to qualify for tax relief.

Further information about the new system and full details of the UK's Co Production agreements can be obtained from the UK Film Council.

http://www.ukfilmcouncil.org.uk/filmingUK/taxreliefbritfilms/