The Chancellor George Osborne has confirmed the introduction of a series of beneficial tax measures for the UK television and film industry in the 2015 Budget.

Film tax relief will be increased to 25% for all qualifying core expenditure regardless of the film’s budget, for all eligible film productions (capped at 80% of expenditure). The distinction between limited budget films and all others will be removed. The measure is designed to encourage the production of culturally British films in the UK.

In addition, as anticipated in the Chancellor’s autumn statement, the cultural test for high-end television tax relief is to be modernised to ensure that only legitimate projects receive the tax credit and the minimum UK spend requirement for tax relief is to be reduced from 25% to 10%, to bring this in line with the provisions for film production.

The changes are effective from the later of 1 April 2015 or the date of state aid approval.