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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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An inside look at Israel's special forces rescue unit fighting terrorists, rescuing hostages: 'Full on Fauda'

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An inside look at Israel's special forces rescue unit fighting terrorists, rescuing hostages: 'Full on Fauda'

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When commandos from Israel’s elite Yamam counter-terrorism force launched a daring daytime raid on two homes deep within central Gaza and successfully rescued four hostages who had forcefully been taken across the border on October 7, it was the first time many people would learn of the unit’s existence. 

For years, the operations of Yamam have been shrouded in secrecy. Often, credit for its missions was given to other units. “Up until a few years ago, not many people knew about Yamam’s activities,” a unit source told Fox News Digital. But in the age of smartphones and social media, videos of their operations have spread online. “Today, with social media broadcasting operations in real-time, we understand that the rules of the game have changed,” the source says.

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Yamam — Yeḥida Merkazit Meyuḥedet, in Hebrew, or Special Central Unit — was founded in 1974 as a special unit of Israel’s Border Police, with the primary mission to take control of and resolve hostage situations. In this regard, it is similar to the FBI’s Hostage Rescue Team, but because it also is capable of rapid offensive raids, such as the hostage rescue executed in Gaza in June, it is closely aligned with such elite American units as Delta Force and Navy SEALs, with whom they are also said to train and cooperate.

ISRAEL RESCUES HOSTAGE AFTER 325 DAYS IN HAMAS CAPTIVITY

Yamam counter-terrorism unit in action somewhere in Israel.  (Israel Police Spokesman’s Unit)

“Yamam is like an aircraft carrier with a wide range of in-house capabilities,” said Zohar Dvir, a retired unit commander, told Fox News Digital. The unit includes specialists like snipers, bomb disposal experts, canine handlers, medics and undercover agents known as “mista’aravim.” “It’s full on ‘Fauda,” Dvir added.

“Yamam equips its personnel with cutting-edge technology,” David Tzur, a retired commander from the group, told Fox News Digital. “The unit serves as a testing ground for innovations, collaborating with civilian and defense industries to refine and replicate technologies for broader use.”

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“What sets Yamam apart is their ability to carry out thousands of high-risk operations with exceptional precision,” Dvir explained.

“Yamam is considered one of the most experienced — if not the most experienced — counter-terrorism units globally,” a unit commander speaking on the condition of anonymity, told Fox News Digital. “Because of the realities we face daily, countering terrorist threats in the West Bank, Yamam fighters participate in hundreds of operations each year. After Oct. 7, we joined the fight in Gaza.”

A Race Against Time

Yamam members played a critical role in the recent rescue of four hostages held by Hamas terrorists.

Yamam members played a critical role in the recent rescue of four hostages held by Hamas terrorists. (Israel Police Spokesman’s Unit)

As part of a condition of talking to Fox News Digital all current Yamam members withheld their full names due to security considerations.

Intelligence pinpointing the location of the hostages in the densely populated Nuseirat refugee camp had been gathered weeks earlier by Shin Bet, Israel’s internal intelligence service, with the help of American and British drones. “We knew about the situation weeks before,” explains Captain A., a team leader told Fox News Digital. “We received the mission, studied the target, and began our preparations.”

On a Saturday morning, the operatives arrived in civilian trucks at the target locations, which were just a few hundred meters apart. Storming the two locations, they rescued the four hostages. At the first site, Noa Argamani, whose terrified image was seen worldwide as she was shown being taken away on a motorcycle by terrorists from Israel on the morning of October 7, was found. At the second location, they rescued Shlomi Ziv, Andrey Kozlov and Almog Meir.

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There was resistance, but “everything went according to plan,” said Deputy Superintendent A, a key figure in the operation. 

Yamam counter-terrorism unit snipers watching out for enemy forces. 

Yamam counter-terrorism unit snipers watching out for enemy forces.  (Israel Police Spokesman’s Unit)

The team faced a particularly challenging situation at Argamani’s location, where they feared one of the terrorists was close to her. “The goal was to get as close to her as quickly as possible, and that’s what we did. We only realized she was alive when A. and D.” — two operatives on the team — “shouted, ‘We have a diamond! We have a diamond!’ Once we confirmed she was with us, our priority was to get her out safely,” Sgt. Major Y. recounts.

Operatives shielded Argamani with their bodies as they moved her to safety under heavy fire. “She was barefoot, so D. carried her on his back. She was terrified and couldn’t believe what was happening, even when we told her, ‘We’re here to take you home,’” A. told Fox News Digital.

Chief Inspector Arnon Zmora

Chief Inspector Arnon Zmora was killed during the raid.  (IDF)

While Argamani’s rescue went smoothly, the situation at the second apartment was far more complicated. As the team entered, they faced “very effective” fire. In the ensuing battle, the team’s commander, Arnon Zmora, was critically injured. “Everything happened very quickly. It was a matter of seconds,” recalls Captain A.  

As with the rescue of Argamani, the team shielded the hostages with their body armor and helmets as they evacuated them under fire. “The area was like a hornets’ nest, packed with militants inside and outside,” A. says. “We quickly moved [the hostages] towards the military vehicles, all the while taking effective fire from within the apartment and its surrounding.”

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idf rescue operation

Yamam troops conducting a weekend rescue operation in the Gaza Strip while under heavy fire.  (IDF)

Though the hostages were rescued unharmed, the end of the mission was tragic for the members of the Yamam team. “We saved the hostages, but we lost one of our own,” one of the fighters told Fox Digital News, speaking of Arnon Zmora, a 36-year-old father of two young boys. “But this is both our privilege and our duty,” he said. “We’ll fight until the last soldier, no matter the cost.”

“While these operations are heroic, they create the illusion that military pressure alone will free the hostages,” said Tzur.  “If there’s an operational window for a rescue, we should take it, but ultimately, we’ll need to make a tough and ugly deal. On October 7th, we were caught off guard, and now we’re forced to negotiate with the devil. Only a deal can bring the hostages back alive,” he said.

The Nuseirat raid was the third time Yamam was involved in the rescue of hostages kidnapped by Hamas, including that of Private Ori Megidish, an Israel Defense Forces (IDF) lookout held captive in the Gaza Strip, and Fernando Marman, 60, and Louis Har, 70, who were held in Rafah. 

Yamam counter-terror unit troops somewhere in Israel.

Yamam counter-terror unit troops somewhere in Israel. (Israel Police Spokesman’s Unit)

As one of Israel’s most elite forces — its operations are often authorized at the highest levels, including the Prime Minister’s Office — the unit’s fighters generally are older than conscripts in the IDF, and they have already experienced intense combat during their service in the IDF. 

When Hamas attacked Israel on October 7, YAMAM operatives were the first to respond to the unfolding crisis, fighting across 15 different locations that day, including a 27-hour-long battle against Hamas’s elite Nukba force at the police station in Sderot, an Israeli city adjacent to the northern border with Gaza. Nine Yamam fighters were killed in that fight. 

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4 Israeli hostages rescued

Noa Argamani, 26, Almog Meir Jan, 22, Shlomi Ziv, 41, and Andrey Kozlov, 27, were rescued in two separate locations in a complex special daytime operation in the heart of Nuseirat in central Gaza. (IDF)

“They prevented the advance of Hamas’ elite forces northward, stopping them at Yad Mordechai and neutralizing many of them. The team, led by Arnon Zmora, halted their progress towards Ashdod, Ashkelon, and even as far as Tel Aviv,” said Dvir and added, “they eliminated more than 200 terrorists.”

“We fight for two reasons,” said G., a Yamam fighter who was in the Sderot battle. “One is the desire to destroy the enemy and to be the first to engage them. But much stronger than that,” he says, “is the desire to save lives.”

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Philippine authorities arrest church leader charged with sex trafficking

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Philippine authorities arrest church leader charged with sex trafficking

Apollo Quiboloy, an ally of ex-President Duterte, is facing child sex trafficking charges in the Philippines and the US.

An influential Filipino pastor charged with sex trafficking who had been a longtime ally of former Philippine President Rodrigo Duterte has been arrested by authorities, the government said.

Department of Interior Secretary Benhur Abalos announced the arrest of Apollo Quiboloy in a brief social media post on Sunday. He did not say where the pastor was arrested.

But the self-proclaimed “owner of the universe” and “appointed son of God” was believed to be hiding in a bunker at a sprawling compound owned by his church, the Kingdom of Jesus Christ (KOJC), in the southern city of Davao, Duterte’s stronghold.

In a press conference, Nicolas Torre, regional police director in Davao, confirmed the arrest of Quiboloy. He said he was informed that Quiboloy surrendered to authorities.

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In June this year, the Philippine Department of Justice charged the pastor with sex abuse prompting a court to issue his arrest warrant. Five other members of his church were also charged with qualified human trafficking and other acts of child abuse.

Earlier on Sunday, the government deployed at least 3,000 police officers to the church compound, where authorities have been conducting an operation for the last two weeks.

Duterte and his allies had criticised attempts by large numbers of police to arrest Quiboloy as an overkill.

When he was mayor of Davao City, and later as president, Duterte frequently appeared on Quiboloy’s television station to promote his police-enforced drug crackdowns, which left thousands of mostly poor suspects dead.

The pastor said his situation in the Philippines “got complicated” after President Ferdinand Marcos Jr came to power in 2022.

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He alleged that Marcos’s government had “conspired” with the agencies in the United States – FBI and CIA – to “hand me over to the Americans”.

Quiboloy had earlier demanded a guarantee from the government in exchange for his surrender that he would not be extradited.

He said if his demands were met, he “will appear and deal with all those cases, no matter where you bring them, here in the Philippines”.

In 2021, the US Department of Justice charged Quiboloy with sex trafficking of girls and women aged 12 to 25 to work as personal assistants, or “pastorals”, who were allegedly required to have sex with him.

Anti-riot police block supporters of Quiboloy as they staged a rally outside the Kingdom of Jesus Christ’s 30-hectare compound in Davao City to protest the arrest of their religious leader [Cerilo Ebrano/EPA]
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Shooting attack at the West Bank-Jordan border crossing kills 3 Israelis

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Shooting attack at the West Bank-Jordan border crossing kills 3 Israelis

JERUSALEM (AP) — Three people were shot and killed Sunday at the border crossing between the West Bank and Jordan, Israeli officials said.

The military said the gunman approached the Allenby Bridge Crossing from the Jordanian side in a truck and opened fire at Israeli security forces, who killed the assailant in a shootout. It said the three people killed were Israeli civilians.

Israel’s Magen David Adom rescue service said the three men who were killed were in their 50s.

There was no immediate comment from Jordan, which made peace with Israel in 1994 but is fiercely critical of its policies toward the Palestinians. The Allenby crossing is mainly used by Israelis, Palestinians and international tourists.

The Israeli-occupied West Bank has seen a surge of violence since Hamas’ Oct. 7 attack out of Gaza triggered the war there. Israel has launched near-daily military arrest raids into dense Palestinian residential areas, and there has also been a rise in settler violence and Palestinian attacks on Israelis.

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In Gaza, meanwhile, an Israeli airstrike early Sunday killed five people, including two women, two children and a senior official in the Civil Defense — first responders who operate under the Hamas-run government.

The Civil Defense said the strike targeted the home of its deputy director for north Gaza, Mohammed Morsi, in the urban Jabaliya refugee camp.

There was no immediate comment from the Israeli military. The army says it tries to avoid harming civilians and only targets militants.

Gaza’s Health Ministry says over 40,000 Palestinians have been killed in Gaza since the war erupted 11 months ago. It does not differentiate between fighters and civilians in its count. The war has caused vast destruction and displaced around 90% of Gaza’s population of 2.3 million, often multiple times.

Hamas-led militants killed some 1,200 people, mostly civilians, in the Oct. 7 attack on Israel. They abducted another 250, and are still holding around 100 of them after releasing most of the rest in exchange for Palestinians imprisoned by Israel during a weeklong cease-fire last November. Around a third of the remaining hostages inside Gaza are believed to be dead.

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The United States, Qatar and Egypt have spent months trying to broker a cease-fire and the return of the hostages, but the negotiations have repeatedly bogged down.

The Palestinian Health Ministry in the West Bank says at least 691 Palestinians have been killed there since the start of the war. Most appear to have been militants killed during Israeli military operations, but the toll also includes civilian bystanders and rock-throwing protesters.

Israel captured the West Bank, Gaza and east Jerusalem — territories the Palestinians want for a future state — in the 1967 Mideast war. Israel withdrew soldiers and settlers from Gaza in 2005 but maintained control over its airspace, coastline and most of its land crossings. Along with Egypt, it imposed a blockade on Gaza after Hamas seized power from rival Palestinian forces in 2007.

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Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war

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