UK tax scheme stirs dispute

UK drama producers have clashed over who stands to benefit from the country’s new tax credit system, which come into effect on Monday.

Justin Thomson-Glover, co-founder of Far Moor, a fledgling business that helps producers in the UK set up international drama coproductions, said earlier this week that “there are still major concerns that need to be ironed out regarding the UK TV tax credit, which is not necessarily UK-friendly.”

However, Simon Vaughn, MD of Titantic and Ripper Street copro partner Lookout Point, has rejected Far Moor’s concerns that the “majority” of British producers won’t qualify for the tax credit.

“It’s got to be good for business. There are always naysayers who moan about things, but ultimately, whether it’s Hollywood coming here or local productions staying here, what’s not to like?” Vaughn told C21.

Vaughn claimed that it was in Far Moor’s interest to “put themselves in the middle of transactions to make them seem as complicated as possible.”

“The tax credits will allow us to make bigger and better projects that can be sold globally. I can’t see a single negative,” Vaughn added.

Lookout Point is currently seeking presales and copro partners for the BBC’s upcoming adaptation of Leo Tolstoy’s novel War and Peace, which Vaughn says will cost in the region of £2.5m (US$3.8m) per hour.

Speaking to C21, Far Moor has subsequently confirmed that it is in favour of the tax credits. However, it emphasised that only the most expensive “high-end” programming stands to benefit from the system.

“We’re not intending to say the tax credit is a detrimental thing. What we’re saying is that the bog-standard UK drama isn’t necessarily what qualifies for it,” Patrick Irwin, another Far Moor co-founder, told C21.

Currently, only shows that cost more than £1m per hour of running time will qualify for the 25% rebate on 80% of the budget.

British productions will have to “work around” expensive US programming such as Game of Thrones, currently filmed in Northern Ireland, because they will “hoover up all the qualified people,” said Far Moor’s Thomson-Glover.

“The majority of UK producers are going to be tantilisingly close to the tax credit, but unless they are able do more than the standard deal to get the core expenditure above £1m, they won’t achieve it.

“There are lots of other foreign productions coming in with much higher budgets that are experienced at putting coproductions together to hit the right levels.”

Meanwhile, Vaughn said the “best projects” would “attract the best people” and that Lookout would “certainly” make more productions in the UK as a result of the tax break.

Previous Lookout productions Titanic, Parade’s End and Ripper Street were filmed in Hungary, Belgium and Ireland respectively.