The London Film Studios are facing crippling property tax hikes as the government agency in charge of overseeing their finances continues to negotiations

Key Highlights :

1. British film and TV studios have been hit with potentially existential increases in property tax bills.

2. The Valuation Office Agency (VOA) officially introduced a so-called “studio tax” from the start of the month, which some independent facilities have argued could force them out of business.

3. The VOA has updated UK studios’ “rateable values,” an assessment of the annual amount a property would rent for if it were available on the open market.

4. The higher the rateable value, the higher the business rate tax.

5. Studios operational after March 31 will not benefit from this protection.

6. The VOA has also been carrying out studio inspections.

7. Industry sources said there had not been a breakthrough in talks with the VOA, but there remains hope that the worst of the rate increases can be reversed.

     British film and TV studios have been hit by potentially existential increases in property tax bills, as industry representatives continue to plead their case with a government agency. The Valuation Office Agency (VOA) officially introduced a so-called “studio tax” from the start of the month, which some independent facilities have argued could force them out of business.

     The VOA has defended the tax, arguing that it is necessary to fund the country’s infrastructure. But the studios argue that the tax is unfair, and that it will have a negative impact on their ability to attract and retain talent.

     The tax is calculated on the value of the property, not on the number of employees or the size of the studio. So studios with smaller properties will be hit harder than those with larger ones.

     The studios are also concerned about the potential impact of the tax on their ability to attract investment. They argue that it is unfair to penalise them for the current economic conditions, when other businesses are not facing the same difficulties.

     The studios have asked the government to suspend the tax, or at least to reduce it. But so far, the government has refused to do either.

     The studios have long been a target of the government’s austerity measures, and they are now facing another challenge. The tax is likely to have a negative impact on their ability to attract and retain talent, and on their ability to invest in new projects.

Continue Reading at Source : deadline