A new system of film tax relief was implemented in January 2007.

The new tax credit strongly encourages UK-based producers to work within the UK and to focus on aspects of British culture.

In terms of benefit to Scotland, the tax credit helps Scottish Screen continue to support indigenous talent and production, as well as to encourage productions to shoot in Scotland.

The main highlights of the tax relief mean that:

• Films that cost up to £20 million, the Film Production Company (FPC) will be able to claim an enhanced deduction of 100% with a payable cash element of 25% of UK qualifying film production expenditure.

• Films that cost over £20 million, the FPC will be able to claim an enhanced deduction of 80% with a payable cash element of 20% of UK qualifying film production expenditure.

• The minimum UK spend threshold for qualifying films will be set at 25%.

The UK Film Council can provide full advice and guidance on applying for Film Tax Relief. Details are available in full from their website at www.ukfilmcouncil.org.uk/.