During 2012 UK Screen worked with an industry-wide group led by the BFI to develop responses to Stage 2 of the EU consultation on state aid and the review of the Cinema Communication. The draft at this stage was potentially very harmful to the UK film industry due to suggested changes in the approach to Territorial Obligations and to Aid Intensity. A coordinated response from across the industry led to a much more favourable re-draft. This became the subject of Stage 3 of the consultation in June 2013. UK Screen’s submission, while welcoming the changes, continued to make the point that the 80% cap on core spend eligible for a tax relief benefits countries outside the EU, rather than member states as originally intended, and is unnecessary in the context of the UK’s ‘used and consumed’ model.
In October 2013 the final revisions were approved and the new Cinema Communication was published - with the final draft safeguarding the UK’s creative sector tax reliefs for film, high-end TV and animation.
UK Screen members can view documentation for this consultation in our Members' Area.