film news

Film Industry set to benefit from historic budget announcement

Chancellor George Osborne has announced a historic budget that will have a wide ranging impact on film production companies and working professionals.

Today George Osborne announced that within the next 5 years, UK corporation tax would fall to a historic low of 18% by 2020 making the UK one of the most competitive countries in the world for business, boosting inward investment in the creative industries and other sectors.

With the reduction in corporation tax, businesses will be able to hire more workers and reduce their costs while also benefitting from a reduction in NI contributions for people on the new National Living Wage earning a minimum of £9 an hour by 2020.

In addition, millions of people will now benefit from a reduction in tax on their income starting next year where they can earn up to £11000 before paying income tax with more reductions coming in subsequent years.

The higher rate of income tax will also be moved to £43,000 while business owners will get a £5000 tax free dividend allowance.

For working professionals in the industry on the minimum wage, their pay will rise while investment is set to increase year-on-year with businesses benefitting from lower taxes on profits.

With the creative economy already booming and new tax breaks announced for the film and TV industries, the UK is set to remain an attractive destination for foreign producers and investors in the next 5 years following today’s budget announcement.