The film industry is a huge contributor to the UK economy, with around 186,000 people in direct employment. It contributes at least £2.6bn in direct gross value and a further £3.5bn in indirect gross value. Both film and television constitute major UK exports, of at least £1.2bn per year.
The impact of Brexit on the UK film industry is divisive. There are two key concerns: how the British film industry could grow outside of the EU and how Brexit will damage British film production.
The film sector is predicted to be impacted by Brexit in the following ways:
- The UK’s screen sector is reinforced by a set of regulations, legislations and policies, many of which are linked to the UK’s membership in the EU.
- Labour market flexibility will be lost, we well as productivity, through potential loss of freedom of movement and labour
- The ability to broadcast channels from the UK to the rest of the EU will be lost
- Both the screen sector and the wider economy will lose access to financing
Benefits Of Establishing A Branch In Cyprus
Creating a branch of your UK-based film operation in Cyprus can help to alleviate the possible negative influence of Brexit. This is because production companies can receive cash rebates and tax credit (as they benefit from a reduced corporate tax rate in Cyprus). They can also receive a VAT refund, for qualifying expenditures incurred in Cyprus and for expenditures related to the implementation of the production, and a tax allowance. This is because when small and medium enterprises (SMEs) invest in filmmaking infrastructure and equipment, they are often eligible to deduce this investment from their taxable income.
There are extensive benefits to establishing your film business in Cyprus. For further information, contact us today.
EQ:IQ And The UK Film Industry Sector
At EQ:IQ, we strive to offer a full suite of services that help businesses across all sectors to pursue international expansion and growth. Our comprehensive offering includes:
- Company and trust formation
- Regulatory support from a well established and well respected regulatory body for financial services
- Banking services
- Audit, accounting and payroll services
- Tax advice and structuring
- Serviced offices and commercial substance
- Access to trained and qualified professionals
