Film Bond Insurance under £1Mn

Film Bond Insurance, cash flow Film Tax Relief.

Film Bond Insurance

Every filmmaker knows or should know about the UK Film Tax Relief (FTR) system.

So for films of all budget levels, the UK government is giving you back 25% of your production spend, effectively 25% of your production budget. So provided you meet the qualifying  criteria, you can take HMRC Tax Relief qualifying certificate to a bank and ask them to advance you the money, using the HMRC Tax Relief as collateral to cash flow 25% of your budget.

 

Film Bond Insurance under £1Mn

Brilliant, a trick for all filmmakers to know and deploy. So where’s the catch? Most banks, won’t cash flow a film without Film Bond Insurance and most Film Bonding companies won’t Bond a film with a budget under £1Mn. So in practice the statement, “for films of all budget levels”, while true for obtaining Film Tax Relief, is not true for reducing the budget requirement for those films under £1Mn. In 2014 there were approximately 123 of 154 films budgeted under £1Mn.
Film Bond Insurance

Recognizing this anomaly, Itasca Films Ltd has negotiated a deal with a leading Film Bond Insurance company to offer a fixed price deal for films with budgets under £1Mn. The offer is a fixed price for all your film insurances in a single package which will include Film Bond Insurance. So for the first time smaller films can enjoy the advantages previously only available to bigger budgets, and take their Film Tax Credit to a bank together with the Bond Insurance to facilitate a short term loan to cash flow 25% of the production budget.  More creative thinking from Itasca Films Ltd.

Contact Itasca Films Ltd on 0207 494 0888 or email FTR@itascafilms.com.

 

 

An Extract from the BFI website:

UK Film Tax Relief

Value of UK Film Tax Relief

Film Bond Insurance

  • For films of all budget levels, the Film Production Company (FPC) can claim a payable cash rebate of up to 25% of UK qualifying film production expenditure.
  • For films with a core expenditure of more than £20m, which completed principal photography before 1 April 2015, the FPC can claim a payable cash rebate of up to 25% on the first £20m of qualifying UK expenditure, with the remaining qualifying UK expenditure receiving a 20% tax rebate.

Accessing UK Film Tax Relief

Film Bond Insurance

  • Tax relief is available for British qualifying films. Films must either pass the Cultural Test or qualify as an official co-production
  • Films must be intended for theatrical release
  • Films, including those made under official co-production treaties, must reach a minimum UK spend requirement of 10%
  • Tax relief is available on qualifying UK production expenditure on the lower of either 80% of total core expenditure or the actual UK core expenditure incurred
  • There is no cap on the amount which can be claimed
  • The FPC responsible for the film needs to be within the UK corporation tax net

 

– See more at: http://www.britishfilmcommission.org.uk/film-production/uk-film-tax-relief/#sthash.o8AVFauQ.dpuf