July 17, 2018

The Government says that this instrument will ensure the continued smooth operation of the UK’s cultural tests for films, television programmes and video games after the UK has left the European Union.  Cultural tests are used to assess whether films, television programmes and video games are culturally British and are therefore eligible for tax relief on production costs.

The inclusion of UK nationals within the current definitions of qualifying production personnel under these tests relies upon the fact that the UK is an EEA state, which it will cease to be after exit day.

The instrument is therefore necessary to avoid the absurd situation that, unless the references to “EEA state” are amended, then British directors, actors and other production personnel would not be eligible to score points under various sections of the test, whereas nationals or residents of any EEA state would, after the UK leaves the EU.  To access the new legislation, click here.