PwC: North should argue for film, TV production tax breaks in budget

Tax breaks in Northern Ireland for film and television production could create thousands of jobs as well as bring significant inward investment to the region, according to a report.

PricewaterhouseCoopers says Northern Ireland should argue for tax breaks in next year’s British budget to encourage more investment in the local creative industries sector.

The report pointed to the success of Belfast’s Titanic Studios in attracting the series Game of Thrones to the North, which contributed over £20m (€24.87m) per series to the economy, as well as the feature film, Your Highness, also shot in Titanic Studios, which brought in a further £11m.

Film productions in the North already avail of the UK’s long-standing tax incentives, and while no breaks are currently available to television productions, that is expected to change in next April’s British budget. PwC tax partner Martin Fleetwood said targeting tax incentives would make Northern Ireland even more attractive to TV, animation, and games production and help compete with the Republic’s Section 481 tax break.

“The Irish Film Board’s Section 481 tax break offers a tax incentive of up to 28% of the cost of television, film and animation production in RoI, with a ceiling of €50m,” he said.

“That has helped create a sector which attracted production spending of more than €225m alone, in 2010. If we are looking at ways to diversify and rebalance the economy, film and television production offers Northern Ireland a means to increase its share of an industry already worth £4.5bn a year to the UK.”

A report commissioned in 2010 into the economic contribution of the UK Film Industry concluded that the sector directly employed 36,000 people and has been relatively immune from the impact of the downturn.