UK Film Sector Relocation: Is Hertfordshire The New Hollywood?
05 Dec 2022 | Sarah Huntridge, Business Development Manager
The film industry is booming in the UK. This is influenced by several tax breaks and incentives available to organisations within the sector. The combined total UK spend on film and high-end (HETV) productions for the full year 2021 reached a record level of £5.64bn (British Film Institute). The signs are that Hertfordshire could become the new Hollywood!
The tax breaks and funding incentives are attracting production companies to relocate to the UK, increasing the need for international relocation support.
UK Film Tax Relief
The British Film Commission confirms the attractive financial incentives available to UK film productions:
- “For all British qualifying films of any budget level, the Film Production Company (FPC) can claim a payable cash rebate of up to 25% on UK qualifying expenditure.
- The Tax Relief is capped at 80% of the core expenditure i.e. even if you have 100% UK-qualifying expenditure, tax relief is only payable on up to 80%.
- There is no limit on the budget of the film or the amount of relief payable within the 80% cap.”
Qualifying for Tax Relief
A film qualifies as British and is eligible for tax relief if it meets co-production criteria of passes the Cultural Test. This is a points-based system and projects must achieve at least 18 points (out of a possible 35) to qualify for tax relief. The test involves cultural assessment of content, contribution, hubs and practitioners. In addition, the film production company must be registered within the UK and liable for corporation tax and films must be intended for theatrical relief.
A similar system exists for high-end television productions to determine their eligibility for High End Television tax relief.
Relocating to the UK
The UK has created some of the most influential and loved cinema and television in the world. Its reputation in filmmaking, TV production, animation, and special effects is recognised globally.
“Hollywood’s Sunset Studios choosing to locate its new £700m base in Broxbourne, is set to create over 4,500 permanent jobs with an estimated contribution of £300m p/a to the local economy,” confirms Visit Herts Business. “Further to this, Comcast’s £3bn investment in Sky Studios Elstree will create over 2,000 jobs." At Studios Leavesden, three new sound stages are being built providing 83,000 sq. ft. of additional production space. The film industry is booming in Hertfordshire.
In addition state of the art, purpose-built Shinfield Studios in Berkshire is due to become one of the largest studio complexes in the UK.
Whilst this trend creates valuable jobs locally, many production companies relocate key personnel for longer term assignments or to meet shorter, project-based requirements.
“As a UK-based relocation services company, we have detailed knowledge of the relocation requirements involved with moving to the UK,” says Sarah Huntridge of BTR International. “Every relocation is bespoke, tailored to the individual assignee and their family. Our flexibility and responsiveness are perfect for the nature of the film industry.”
Are you managing talent mobility within the film industry?
Is your film production company relocating to the UK?
Talk to the friendly experts at BTR International. With over 35 years of successfully helping people to relocate to new countries for their work role, we’ll ensure that your moves are seamless with minimal stress. Contact Sarah via firstname.lastname@example.org or +44 (0)1582 495495 for an initial discussion without obligation.