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Increased Tax Credit Provides Welcome Relief to U.K. Independent Film Industry

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Increased Tax Credit Provides Welcome Relief to U.K. Independent Film Industry

The announcement of the U.K.’s new Independent Film Tax Credit (IFTC) back in March had a near instantaneous impact, at least in the case of one film production.

“Giant,” the biopic of boxer Naseem Hamed and starring Amir El-Masry, was in advanced pre-production when the news landed, with plans to shoot location work in Hamed’s home town of Sheffield and all the interiors — including the essential boxing rings — in Malta. Sets were already being built on the Mediterranean island, which has been courting numerous film productions in recent years thanks to a generous 40% tax rebate initiative.

But then the IFTC was unveiled and the U.K., when it came to producer’s all-important bottom line, was suddenly much more competitive. What had previously been a 20% tax break was now around 32.5% (it was initially billed as 40%, but is actually lower after corporation tax). Given the costs involved in shipping the film overseas, “Giant” didn’t need to pack up its bags.

“As soon as the tax credit came out, we did the analysis and immediately it made more economic sense, straight away, to keep it here,” explains Zygi Kamasa, the head of distributor and producer True Brit Entertainment. “So we pivoted within days of it coming through.”

“Giant” may have been the first, but just six months on from the announcement of the IFTC Kamasa says that it’s contributed enormously to the output of his nascent company — which was only launched in November 2023 with a focus on films for British cinemagoers. Where there was an initial aim to produce three films in its first year, True Brit will soon begin shooting its eighth. And while some — like “Giant” — would have happened regardless of the tax credit, he says “there were movies that were definitely expedited” because of it.

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The significant interest and optimism within the British film industry since the IFTC’s announcement, despite not yet being fully implemented, is a far cry from the dark days of 2022. A report commissioned by the British Film Institute (BFI) that year had the key and ironic takeaway that the overall boom in the country’s film and high-end TV sector had led to a corresponding negative impact on the independent sector. It found that the speed and volume of growth strained the sector so much that it couldn’t compete with larger budget international productions on several levels — from accommodating the rising cost of production to securing cast and crew, and ultimately to reaching audiences.

BFI statistics reveal that getting U.K. films budgeted under £15 million ($19.6 million) into production had become increasingly challenging. After plummeting by 31% in 2022, spend on independent U.K. film in 2023 fell a further 11% to just £150 million ($196.9 million).

Now, in 2024, post IFTC announcement, Harriet Finney, BFI deputy CEO and director of corporate and industry affairs, says, “We’ve seen a lot of positivity in the industry. It’s definitely changed the conversation for independent filmmakers in this country.”

The BFI is currently preparing for increased capacity once the statutory instrument and guidance notes are published later this year. Finney explains, “We’re making sure that we’re in the best possible position to deal with what is likely to be a flurry of activity. It feels like there’s a growing sense of confidence around domestic production.”

Simon Williams, managing partner at Ashland Hill Media Finance, reports seeing an uptick in projects considering filming in the U.K. “We’re getting lots of different projects coming to us, asking if they should be shot in the U.K.,” Williams says. He notes that some international producers are exploring the possibility of adapting their scripts to meet U.K. requirements. “The U.K. looks more attractive for film currently, because the tax credit, it’s probably bigger than pretty much anywhere else in the world, aside from maybe Australia. But Australia is far away and it’s costly to take people over there,” Williams said.

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However, Williams expresses concerns about potential cost increases. “We don’t want costs to increase by shooting in the U.K., which negates the benefit of the tax credit,” he cautions.

Ashland Hill-backed “The Magic Faraway Tree,” based on Enid Blyton’s beloved book, is currently in production. “The Scurry,” directed by Craig Roberts and starring Ella Purnell, Rhys Ifans and Antonia Thomas, has just finished shooting, which Ashland Hill funded against the increased tax credit. “That film would never have happened if it wasn’t for this increased tax credit. I think the only thing that may deter some lenders from putting money against it [is] if you are entering into a production now, you can’t put a claim in for your tax credit until April next year. Whereas in the current tax credit, you can make interim claims, which from a producer’s perspective, if you have a lender, you can make multiple claims and pay down the loan quicker, rather than doing one big claim in 18 months time,” Williams said.

Alex Ashworth, head of production at Anton, believes the IFTC will make a significant impact, particularly for films in the £5-15 million ($6.5-19.6 million) budget range. “I think it will really help independent film producers where we’ve lost that mid-budget section,” Ashworth says. “There was a long time where that was the U.K. sweet spot, films like ‘The King’s Speech,’ and I feel like the cost of production has gone up so that it’s very hard to make those at that level. Our incentives are good, but they aren’t necessarily comparable to some other territories. So by doing this, you’re offsetting basically the inflation that our production industry has experienced in the last five to seven years. I think it will really help those independent films who are probably struggling to get their finance plans to hit those higher budget levels.”

Ashworth estimates that Anton is currently working on four to five projects with the IFTC in mind for shooting in the next 12 to 18 months.

Producer Alastair Clark, whose recent film “Sister Midnight” premiered at Cannes, also sees the IFTC as a positive development for the industry. “The mood is great,” Clark says. He also points out that while the net benefit is around 32.5% after corporation tax, rather than the initially advertised 40%, it’s still a significant improvement over the previous system.

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Clark is already incorporating the IFTC into his project planning. “Certainly, one very solid project right now that we’re raising the finance for. It’s a big part of it,” he says. Clark believes the increased tax credit will reduce the need for riskier private financing in some cases. “Borrowing against the tax credit versus borrowing against an MG (minimum guarantee) or a sales advance, is cheaper, and therefore helps finance plan a budget,” Clark said.

While the industry awaits full implementation of the IFTC, the initial response suggests it could play a crucial role in bolstering the U.K.’s independent film sector and positioning it far more attractively on the global stage. For Phil Hunt at Head Gear Films, it’s certainly a very positive move after the “nightmare of Brexit,” which he claims “ripped the heart out of indie co-productions.” The veteran producer says he’s already noticed that producers in North America are “definitely now looking to put more productions in the U.K. and, when talking to folk in LA, there seems to be a drain away from the U.S.”

But that’s not to say that execs are seeing IFTC at the perfect solution, of course. As with most newly-launched financial incentives, there are hopes that it will be tweaked and changed along the way, especially with the U.K. under a new Labour government that has, traditionally, been more supportive of the arts. An ideal situation for many is that the 40% rebate actually does mean a full 40% for producers.

“I’d love the government to look at that,” says Kamasa. “I think it should be the full 40%, because then you’d be truly competitive with places like Malta and Italy.”

HOW THE IFTC WORKS

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The IFTC is calculated on “core expenditure” related to production activities, with qualifying companies able to claim up to 80% of their core expenditure or the amount of U.K. core expenditure, whichever is less. For a £15 million ($19.6 million) budget film, this could mean a maximum credit of £6.36 million before tax.

After corporation tax, which varies between 19% and 25%, the actual cash benefit could range from £4.77 million ($6.26 million) to £5.15 million ($6.76 million). This represents a substantial increase from the previous Audio-Visual Expenditure Credit (AVEC) system, which would have provided between £3.06 million ($4.01 million) and £3.30 million ($4.33 million) for the same budget.

The BFI will assess film budgets to ensure they meet the IFTC criteria. Productions that exceed the £15 million budget cap during filming will have the option to continue with the IFTC or switch to the AVEC system.

Claims for the IFTC can be submitted to HMRC (His Majesty’s Revenue & Customs) from April 1, 2025, for expenditure incurred from April 1, 2024, provided principal photography began after April 1, 2024.

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US tells ASML it is concerned China may have top chip tool, Bloomberg News reports

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US tells ASML it is concerned China may have top chip tool, Bloomberg News reports
U.S. Commerce Secretary Howard Lutnick ​outlined concerns to ‌Dutch chip-equipment firm ASML’s senior leaders ​that one ​of its top-of-the-line machines ⁠may have ​made its way into ​China, in violation of U.S.-led export restrictions, ​Bloomberg News ​reported on Thursday.
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Iran hardliner behind US deal warns Tehran won’t honor agreement if Trump fails to deliver

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Iran hardliner behind US deal warns Tehran won’t honor agreement if Trump fails to deliver

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Iran’s hardline parliament speaker and key negotiator Mohammad Bagher Ghalibaf warned that Tehran would not honor its commitments under a newly signed memorandum with the U.S. if Washington fails to uphold its side of the deal, according to the media arm of Iran’s Islamic Revolutionary Guard Corps. 

“If the United States does not honor its commitments, there is no way Iran will honor its own commitments,” Ghalibaf said.

Ghalibaf’s warning was echoed Thursday by Islamic Revolutionary Guard Corps Quds Force commander Esmail Qaani, who threatened the U.S. in remarks translated by MEMRI TV, saying, “Americans should know their place and avoid confronting the Muslims.” 

Qaani added that “Trump is trembling” and warned that the U.S. “should fear not only Hormuz and Bab al-Mandeb, but many other locations as well.”

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MEET IRAN’S HARDLINE SPEAKER WHO THREATENED TO BURN US FORCES — REPORTEDLY TEHRAN’S POINT MAN FOR TALKS

The warnings came after President Donald Trump and Iranian President Masoud Pezeshkian Wednesday digitally signed a copy of the memorandum aimed at ending the war and resuming the flow of traffic through the Strait of Hormuz.

Iran’s hardline parliament speaker and key negotiator Mohammad Bagher Ghalibaf warned that Tehran would not honor its commitments under a newly signed memorandum with the U.S. if Washington fails to uphold its side of the deal.  (Majid Asgaripour/WANA)

The memorandum gives Iran major economic relief while leaving some of the most difficult nuclear questions for a final agreement to be negotiated throughout the next 60 days. Under the 14-point plan read by a senior U.S. official, Washington agreed to begin lifting its naval blockade, work with regional partners on a $300 billion reconstruction and development plan for Iran and terminate U.S., U.N. and other sanctions on an agreed schedule as part of a final deal. 

The memorandum also says all licenses, waivers and permissions needed for related financial transactions would be granted by the United States.

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In return, Iran reaffirmed that it “shall not procure or develop nuclear weapons,” and the sides agreed to resolve the fate of Iran’s stockpiled enriched material under a future mechanism, with the minimum method being on-site down-blending under International Atomic Energy Agency supervision. 

The agreement defers many of the hardest questions — including how to wind down Iran’s nuclear program — until the 60-day negotiation period for a final deal.

But the Iranian figure at the center of the deal is not a diplomat known for moderation. 

Ghalibaf, a former Islamic Revolutionary Guard Corps commander and longtime regime insider, has threatened American forces, vowed Trump would “pay the price” and built his career through loyalty to Iran’s security establishment.

The new warning underscored what experts say is the central risk of the agreement. Washington may be entering a deal with officials who can enforce Iran’s commitments but who have shown little sign of changing the regime’s long-term posture toward the U.S., Israel or the region. 

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Ghalibaf, 64, is a product of Iran’s security establishment. He rose through the ranks of the Islamic Revolutionary Guard Corps during the Iran-Iraq War, eventually becoming commander of the Islamic Revolutionary Guard Corps air force. 

He later served as Iran’s national police chief, overseeing internal security forces responsible for suppressing protests, including the 1999 student uprising, alongside Qassem Soleimani.

After transitioning into politics, Ghalibaf attempted to run for president multiple times but failed. He instead built his career through loyalty to the system, serving as Tehran’s mayor for more than a decade before becoming speaker of parliament in 2020.

FAMILIES OF IRAN’S ELITE LIVE LAVISHLY ABROAD WHILE ORDINARY CITIZENS SUFFER AT HOME

Iranian Parliament Speaker Mohammad Bagher Ghalibaf looks on as parliament members wearing military uniforms chant in support of the IRGC in Tehran, Iran, on Feb. 1, 2026. (Hamed Malekpour/Islamic consultative assembly news agency/WANA/Handout via Reuters)

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“Ghalibaf doesn’t have an independent line. His strength is that he is a ‘yes man,’” Beni Sabti, an Iran expert at the Institute for National Security Studies, previously told Fox News Digital. “If he is told to shake hands with special envoy Steve Witkoff, he will do it. If he is told to escalate, he will. It is not about moderation, it is about who gives the orders.”

“His name has also been linked to multiple corruption allegations, including misuse of oil revenues and sanctions evasion networks involving his family. His sons have reportedly been involved and are under sanctions,” Sabti said.

“There have also been public scandals involving family members traveling abroad and making luxury purchases, including widely circulated images of them arriving with numerous high-end Gucci suitcases.”

Behnam Ben Taleblu, a senior fellow at the Foundation for Defense of Democracies, said the image of Ghalibaf at a signing ceremony with a senior U.S. official would be a propaganda victory for the regime.

“There was a time when the Islamic Republic would have been terrified to be seen signing such a thing,” Ben Taleblu told Fox News Digital. “Postwar, this is a sign of the regime’s opportunism, and no one identifies that opportunism better than someone like Ghalibaf, who comes from the IRGC, who is a corrupt politician and is a wheeler and dealer.”

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But Taleblu warned that Washington should not confuse Ghalibaf’s opportunism with moderation. 

“The mirage is the myth of Iranian military moderation and the myth that, with time, this regime will integrate and put aside all the things that have kept it on the sidelines for so long,” he said. “Transforming Iran via a deal — that is a huge lift.”

Ghalibaf’s wartime statements reflect the hardline posture inside Iran’s leadership. In remarks aired on Iranian television Jan. 12 and translated by MEMRI, he warned that U.S. forces would face catastrophic consequences if they confronted Iran.

“Come, so you can see what catastrophe befalls American bases, ships and forces,” he said, adding that American troops would be “burned by the fire of Iran’s defenders.”

TRUMP ADMINISTRATION UNVEILS SWEEPING TERMS OF PROPOSED IRAN AGREEMENT

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A man lights a cigarette with fire from a burning picture of Iranian Parliament Speaker Mohammad Bagher Ghalibaf as Israelis rally in support of nationwide protests in Iran in Holon, Israel, on Jan. 14, 2026. (Ammar Awad/Reuters)

More recently, he warned that “the blood of American soldiers is the personal responsibility of Trump” and vowed Iran would “settle accounts with the Americans and Israelis,” adding that “Trump and Netanyahu crossed our red lines and will pay the price.”

John Hannah, a senior fellow at the Jewish Institute for National Security of America and a former national security advisor to Vice President Dick Cheney, said Ghalibaf’s expected role reflects the reality of who holds power inside Iran. 

“If you’re going to sign an agreement with Iran, those are the forces in charge and calling the shots, presumably with the approval of the new supreme leader,” Hannah told Fox News Digital. “If the U.S. harbors hope that Iran will ever implement any of their obligations under the MOU, these are the people — odious as they are — capable of making it happen.”

But Hannah said the central question is whether Iran’s leadership sees compliance as useful or whether the agreement is simply a tactical pause.

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“The big question is whether they see it in their interest to do so, or are they only buying time, rebuilding their power and preparing for the next round of conflict,” he said.

Ben Taleblu was even more blunt, warning that even a seemingly favorable agreement would not change the nature of the regime.

“Even if you’ve got the perfect deal, with this kind of regime, with this kind of mentality, they will escalate,” he said. “I thought we would have learned by now what the regime did after the JCPOA. It built a vast missile arsenal. It literally built an empire of terror proxies that took Israel years of blood, effort and money to dismantle, backed by American support.

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Iranian Parliament Speaker Mohammad Bagher Ghalibaf speaks during a press conference in Tehran, Iran, Nov. 27, 2024. (Majid Asgaripour/WANA via Reuters)

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“If we engage in pay-to-play with these guys,” he added, “I’m sorry to sound the alarm bell like this — but something tells me this is bad either way.”

Responding to questions about the threats from Ghalibaf and IRGC Quds Force commander Esmail Qaani, the White House defended Trump’s approach and warned Iran would face consequences if it failed to reach a final deal.

“President Trump has a great track record of good deals for the American people, and the President has been clear about the consequences if Iran fails to make a good, final deal,” White House spokeswoman Olivia Wales told Fox News Digital. 

“What the president has achieved on the battlefield and at the negotiating table is nothing short of remarkable and will strengthen American security for many years to come.”

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US-Iran talks postponed as Israel attacks Lebanon

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US-Iran talks postponed as Israel attacks Lebanon

Tehran holds back from talks to cement ceasefire due to ongoing Israeli attacks on southern Lebanon.

Planned talks in Switzerland between the United States and Iran to discuss the technical terms of their ceasefire deal have been postponed.

The Swiss Foreign Ministry confirmed early on Friday that the talks, which were scheduled to take place in Burgenstock, would now not go ahead.

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Reports suggest that Iran has delayed sending its delegation to discuss the technical issues linked to the ceasefire deal – digitally signed by the two countries on Wednesday – due to Israel’s ongoing military campaign in Lebanon.

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Israeli strikes overnight and into Friday have reportedly killed at least 16 people in southern Lebanon, with Iran-linked Hezbollah reporting intense fighting.

Talks postponed

A ceremony followed by talks was expected to be held at the Burgenstock Resort in Stansstad, near Lucerne in central Switzerland.

It is owned by Katara Hospitality, part of Qatar’s sovereign wealth fund, which helped mediate peace in the conflict.

On Friday, in a message to media outlet AFP, the Swiss foreign ministry said: “The planned talks between the US, Iran, Qatar and Pakistan have been postponed”.

“Switzerland remains ready to facilitate these talks. The relevant preparatory work at Burgenstock is continuing,” it added, without providing a new date for the talks.

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The announcement followed a report from media outlet Al-Mayadeen that Iran was delaying sending its delegation to Switzerland over Israel’s ongoing military campaign in Lebanon.

Israeli Prime Minister Benjamin Netanyahu said Thursday that Israel’s military will stay in a “security zone” of southern Lebanon as long as “Israel’s security needs require it.”

Israel and Hezbollah are not parties to the agreement, but Iran has insisted Israel must withdraw from the large swath of southern Lebanon it is occupying.

Logistics have never been ‘simple or predictable’

The US push to quickly begin high-stakes talks with Iran hit a snag just two days after the signing of a 14-point memorandum of understanding with the US that sets out a framework for talks during a 60-day negotiation period.

Vice President JD Vance had been prepared to make an overnight flight to meet with his Iranian counterparts at the mountainside resort in the tiny Swiss village of Obburgen.

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His staff and a small pack of journalists had even gathered at Joint Base Andrews outside Washington in anticipation of the trip.

Meanwhile, dozens of White House officials, advance staffers and more media gathered in Switzerland to prepare for Vance’s anticipated arrival.

But then, abruptly on Thursday evening, the trip was called off.

The White House issued a statement explaining Vance – who has been tapped by President Donald Trump to lead the negotiations – and his delegation were prepared for talks, but they were unable to finalise plans and the vice president would remain in Washington.

“The logistics of these negotiations have never been simple or predictable,” the statement noted.

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Also on Thursday, Pakistan’s Prime Minister Shehbaz Sharif cancelled his trip to Switzerland, his spokesperson told AFP.

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