Film industry lobbying looks to have paid off in the Spring Budget as the Chancellor of the Exchequer announced a new, Film Studio Business Rates Relief that will come into effect on 1 April 2024 at a headline-grabbing, 40% maximum reduction in liability, worth £470m over 10 years. The relief is, however, conditional...
The 2023 Rates Revaluation saw the rateable values of many film studios increase by as much as 600%. There was outcry among the film fraternity, with independents and international film makers hard hit.
The relief is very specific and is likely to only affect around 40 properties in England due to the tightly drawn criteria.
There is a complex formula for calculating the reduction in liability and by coming into effect on 1 April 2024, the 30% transitional cap that applies in 2023/24 is not a consideration for the relief calculations. There are also clawback provisions should a studio’s rateable value change on appeal. A further requirement of the relief is that filmmakers must assist the Valuation Office Agency in providing the evidence necessary to value their studios for future revaluations.
It is also worth noting that the Government is yet to confirm subsidy control. Relieving a specific sector of commerce could be viewed as state-aid, although this may be easier to deal with several years after the UK’s departure from the EU.
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