New Cultural Test For British Films
174/05
Details of a new test which will ensure British films deliver real benefits to our domestic film industry, UK audiences and the British economy, were set out today by Creative Industries Minister, James Purnell.
The first ever 'Cultural Test for British Films' introduces a points system to provide a clear and measurable definition of what a British film is.
To qualify as British, a film must past the test, which is made up of three main categories. It is expected that all films applying for the new tax incentives will need to pass this test.
The three categories are:
Cultural hubs – is the production and filming based in the UK?
Cultural practitioners – do the cast, crew and/or producers come from the EEA (European Economic Area)?
Cultural content – is the film set in the UK, are the characters British?
The current British film definition is based on spend. At least 70 per cent of a film's production costs currently has to be spent on film production activity carried out in the UK in order to qualify.
The flexibility of the new system will allow producers to clock up points if they use UK content, facilities and personnel, but is not intended to penalise them if they look to source some of their film making outside of the UK.
James Purnell said:
"The new test operates around a points system that will focus on three distinct areas – cultural content, cultural hubs and cultural practitioners. Films which score at least fifty per cent of the total points available will be certified as British.
"Film-makers stand to benefit from this increased flexibility. And the whole production sector will benefit from increased incentives to use British content and facilities.
"And that's not to mention the audience who will benefit from a strong and sustainable British film industry.
"One thing the Cultural Test is not, is an attempt to dictate the content or subject matter of British films. Mrs Henderson Presents or Pride and Prejudice could qualify, but so too could Batman Begins - based in Gotham City, but filmed in the UK, employing Brits and using British facilities."
John Woodward from the UK Film Council, said:
"This new test provides a simpler way to assess British films for the purpose of accessing tax breaks. It will, therefore, help all filmmakers, whether they are making low budget or high budget films by providing a robust and transparent mechanism to assess whether a film qualifies as British.
"The new test will also be more comprehensive in its approach to assessing both the economic and cultural contribution to the UK that the British film industry delivers and will give filmmakers and financiers certainty about how their films can qualify and therefore access the tax incentives.
"It also means that taxpayers' money will be spent on films that deliver a clear cultural and economic benefit to the UK."
Notes to Editors
1. The Cultural Test for British Films is available here.
2. The proposals for the cultural test have been the subject of a 12 week consultation period, during which time consultation meetings have been held. The Department received 39 written responses.
3. The UK government has notified the proposed new tax relief to the European Commission under the State Aid rules. The cultural test will be subject to comment and possible amendment as a result of this.
4. It is our intention to introduce a system of pre-certification for the cultural test, subject to the conclusions of a full regulatory impact assessment.
5. Looking for further help from the industry to ensure that the accompanying guidelines to the cultural test are as transparent as possible and offer certainty to filmmakers. Our aim is that the guidelines are published as soon as possible.
6. Guidance will give clarity on how points will be awarded for certain categories. This guidance will be available in good time before the new cultural test comes into operation. The guidance will include grading systems to award points on a pro rata basis where more than 1 point is available, and set the level of activity required in the UK to score single points, with advice on techniques for how to measure this.
7. HM Treasury has been running a parallel consultation on the future of tax relief for British film production.
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