Press Release: State aid: Commission approves revised UK film tax incentive scheme

The European Commission has approved the United Kingdom’s film tax incentive scheme on the basis of EC Treaty state aid rules. The scheme aims to use tax-based incentives to encourage filmmakers to produce cultural British films. The scheme has been approved until 31 March 2012 on the basis of the revised UK Cultural Test. The Commission’s assessment of the scheme was based on the criteria outlined in its 2001 Communication on cinema and audiovisual production. The UK authorities have undertaken to modify the film tax incentive scheme, if necessary, in accordance with any changes to the state aid rules in the audiovisual sector.