Britain’s creative industry is tipped to get a shot in the arm from the chancellor’s Autumn Statement on Thursday, in the shape of tax breaks for the visual effects industry.
In fact, George Osborne is anticipated to announce that he will extend the existing film tax relief’s code to hi-tech graphics productions, following a government consultation in May.
Despite the UK being a world-leader in the sector, the chancellor is thought to be concerned that budget cuts at big studios and tax treats from Canada are luring ‘VFX’ companies away.
As a result, Mr Osborne will unveil new measures in the Finance Bill to incentivise the VFX activity of film production firms to be carried out in the UK, where a host of top studios are located.
Baker Tilly, the accountant, said:“Visual effects is thought to be the fastest growing part of the film industry, with 18 out of 20 of the highest grossing films of all time being visual-effects heavy
“The government is therefore keen to explore the need for government measures to address any reported decline within the UK visual effects industry.”
The accountant’s comments come in the same week that Mr Osborne was urged to use his Autumn Statement to abolish an existing tax obligation for self-employed and freelance workers.
According to the Institute of Directors, the chancellor should state in his mini-budget on Thursday that the government will abandon Class 2 NICs, a separate system and process to collect a mere £2.70 a week.