The U.K. entertainment industry is eagerly awaiting the arrival of April. George Osborne, Britain’s chancellor of the exchequer (equivalent of a treasury secretary) recently pointed out that the introduction of the tax relief would play a big part in keeping the U.K.’s vfx sector competitive with the rest of the world.
According to the budget documents, approval for the animation and high-end TV tax relief was expected shortly and they would start on April 1 as previously signaled by the government. A video game tax relief is also in the works after state aids approval. The entertainment tax benefits will provide a 25 percent tax break on qualifying U.K. expenditures.
The 2013 budget documents illustrate that for the fiscal year starting in April, the government is forecasting a $23 million (£15 million) allocation rising to $83 million (£55 million) by 2017/18.
Adrian Wootton, chief executive of the British Film Commission and Film London said, “The new measures will ensure that we can continue to compete globally on a level playing field; and continue to attract the biggest and most technically challenging film and television projects to the U.K.”
I am not really familiar with what this article is talking about. Is it saying that the British Government is helping their entertainment industry financially? Like a subsidy?
That is exactly what this article refers to. With the notable exception of the US (which prefers to see its domestic industries destroyed and outsourced and its populace left jobless) countries around the globe are subsidizing animation and visual effects and providing tax incentives to lure business.