Creative Industries Tax Credits are a great way for you to get funding for your Film Project.
Making or producing a creative industries project such as a high end television show, or a feature Film production is as much about sorting the finance as it is the creative idea. As well as script and casting, the finalised budget is an important document that can be used to secure additional funding, giving working capital to help the production. This is where Adsum’s Creative Industries Tax Loan is proving to be a vital part of the process and becoming more and more popular within the film industry.
Adsum will loan 100% of the qualifying tax credit (net of fees and interest) on receipt of the interim certificate from the British Film Institute (BFI). The BFI manages certification and qualification on behalf of the Department for Digital, Culture, Media and Sport.
To qualify for creative industry tax reliefs, all films must be certified as British. The film must pass a cultural test or qualify through an internationally agreed co-production treaty. Once the financial computations have been done, and prior to a submission of a CT600, up to 80% of qualifying expenditure is eligible for a tax credit of 25%.
An example is a Film project that has qualifying expenditure of £1,000,000, would give rise to a Creative Industries tax Credit of £200,000. Adsum can provide an upfront loan secured against this credit giving the production company a much needed working capital boost just when it is needed the most. This cash can be used to pay upfront costs such as travel and directors fees, and the repayment of the loan comes direct from HMRC via the tax credit.