But I Say "Big Ben"...

HM Treasury -- the British money people -- has released its report The Reform of Film Tax Incentives which also provides guidance on a proposal for new tax credits to replace Sections 42 and 48.

As Variety reports,

The tax credits will provide up to 24% of the budget for British movies costing less than £20 million ($35 million) and a maximum of 20% for bigger-budget pics.

That compares favorably with the current relief, with S48 typically worth 14% for films up to $26 million and S42 generating around 8% for bigger movies.

At real issue is the cultural aspects of the new regime, wherein films are scored on a points systems for "better targeting of support towards culturally British films" according to the press release from HM Treasury. Additionally, only UK expenditures would qualify for tax breaks, as opposed to the 100% of spending allowance under current rules. While likely to be less restrictive than the French, who denied qualifying status to a French language film because it was "funded" by a major studio, it will reduce the ability of Hollywood to utilize these credits in their film financing arsenal.

Reflecting on the proposal, UK Film Council Chief Executive Officer John Woodward remarked that, “The new tax credit system will continue to provide a subsidy for British films but also offers the potential to help build British film businesses by encouraging investment in slates of films rather than single projects." The slate comment is related to a provision allowing producers to claim some tax-free income from not just a single film but across a slate of films.