The test will determine whether films can qualify for the new system of tax relief which was announced by the Chancellor in the Budget earlier this year. There are four sections in the test, which together measure the extent of a film’s British cultural character.

The four sections are:

• Cultural Content – is the film set in the UK, does it have British characters, is it based on British subject matter or underlying material and is it filmed in English?
• Cultural Contribution – does the film reflect British culture in relation to cultural diversity, heritage and creativity?
• Cultural Hubs – is the film made in UK studios or on UK locations, does it use British visual or special effects or music recording facilities, does it use British post production houses?
• Cultural Practitioners – are the people who work on the film from the European Economic Area?

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Film makers will be awarded points in each of the categories and must score a minimum of 16 points out of a possible 31 to pass the test. There is in addition a ‘golden points’ mechanism for some films that collectively score a lot of points in sections C, D and A4 (see below for further details).

The test, which was published in December last year, has been revised in line with the European Commission’s State Aid requirements.

Shaun Woodward said:

“This announcement is good news for the UK film industry. It marks the future for a successful, stable and sustainable film industry. We have a film framework which will deliver for both the industry and audiences alike.

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“The film scheme will be good both for independent and large studio productions. The Cultural Test will ensure that every film qualifying for tax relief either reflects or contributes to furthering British culture. And it is good news for British talent, studios, locations and all those offering production facilities.

“DCMS will do all it can to ensure that the new requirements are as widely understood as possible.”

Notes for Editors:

1. The Cultural Test is available on the DCMS website.

2. As noted above, film makers must score a minimum of 16 points out of a possible 31 to pass the test. However, a "golden points" rule has been introduced for a film scoring all 15 of the points available in sections C, D and A4. If it scores less than two points in section A1 and less than two points in section A2, it must additionally obtain the points in section A3 to pass the cultural test. If a film scores two points in section A1 or two points in section A2, it will not require the additional points from section A3 in order to pass the test.

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3. The Cultural Test was submitted to the European Commission in December 2005 for State Aid clearance. The Commission did not accept that the test in its submitted form, as passed by Parliament in April 2006, went far enough to satisfy the state aid requirements of European law. The British Government has therefore been working with the Commission to ensure that the revised test does meet those requirements which allow EU member states to subsidise commercial films for cultural purposes within the regime established, to protect open competition between member states.

4. The next step is for the DCMS to lay a draft Order before Parliament to modify the cultural test as set out in Schedule 1 to the Films Act 1985. The Order will come into force once it is approved by the House of Commons and House of Lords, which will probably be by the end of the year. It will provide that the new test will apply to films commencing principal photography on or after 1 January 2007

Note: Details of the "golden points" were added to this Press Notice on 24th November 2006.