I urge short filmmakers to use this information wisely. False or exaggerated claims to HM Revenue & Customs are a crime and could result in the law being changed. The government is quick to respond to what it sees as abuses in the tax system.
In February 2004, the government overnight and without warning changed the rules of the tax system. The UK Film Council listed over 40 productions that were “directly affected” by this surprise change including Tulip Fever, starring Jude Law and Keira Knightley, which was forced to shut down and has still not yet been revived.
Arguably this case relates to investors knowingly exploiting a loophole in the legislation whereas claiming tax relief on short films can be said to be very much in the spirit of the current system.
Last year Culture Minister Barbara Follett said:
It’s my opinion that when correctly applied, the government will not be able to argue that short films claiming tax relief is an abuse. Their aim is to support the British film industry and I strongly believe today’s short filmmakers are tomorrow’s feature filmmakers.
Dave Morrison from Nyman Libson Paul feels slightly differently:
| “The Government will change the rules if they feel that there is abuse. I think they want to fund commercial movies rather than hobby filmmaking, so they are likely to tighten up on the type of short they accept if there are large numbers. This may mean new rules, but is more likely to manifest in rejected claims in the shorter term” |
If their films qualify, UK short filmmakers should use this information to increase their budgets, provide much needed marketing funds or contribute to future films.
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