Pinewood Shepperton saved from funding fiasco

The future of Shepperton Studios is brightening after the film tax system got a revamp in Gordon Brown's budget - reports The Staines Guardian.

The famous film and TV studios warned of hard times and issued two profit warnings in the last 12 months after it said the growth of major film companies crossing the channel was killing the industry.

Chancellor of the Exchequer Gordon Brown's budget came into force on Saturday, April 1.

Chairman of Pinewood Michael Grade said: "Trading conditions, particularly for the first half of 2005, were challenging, resulting principally from our customers' uncertainty which has now been resolved over the outcome of the Government's review of the UK film fiscal policy."

The Government said the changes would be better for the film industry and stop people taking advantage of the old regime.

Last year the studios reported a £33.4million turn over compared with £38.7million for the previous year.

Now films with budgets under £20million with be given 20 per cent tax credit and 16 percent for more expensive projects.

Films will now be required to spend at least 20 percent of their budgets in the UK to qualify for tax relief down from the proposed 40 per cent.

Mr Grade added that the prospects for the coming financial year were encouraging.

Last July, the Staines Guardian reported that profits at the studio, where the Harry Potter franchise is also filmed, had fallen by 20 per cent .

The group that its margins were suffering because of the strength of the pound against the dollar and the Government's tax review.

The news that the studio had to halt a 10-year planning development aimed at improving business, due to profit problems, also followed.

Under the proposals Pinewood had intended to build new art facilities including stages, workshops and production offices.

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