Source: Saffery
John Graydon
In an upbeat keynote address to open the Film London Production Finance Market (PFM) today (October 8), John Graydon, senior partner at leading film and TV accountancy firm Saffery, predicted the new Independent Film Tax Credit (IFTC) will make the UK a hub for coproduction.
The IFTC is an enhanced expenditure credit of 53% that equates to approximately 40% in tax relief on eligible spend. "You can already see a shift. This 40% is a very attractive offer. My own perception is that
will be back in favor very quickly. Graydon said that it was the biggest news for the independent film industry in his career and in the nearly 30 years he has worked in the sector. "It is going to make a really big difference."[to international partners]Interviewed on stage by Judith Chan, executive director in media banking for Coutts & Co, Graydon also forecast the UK could now become a major magnet for US and international horror pictures from companies like Blumhouse and Black Bear.[coproductions]"I do think we might become the home of horror," Graydon said. The model of a decent star with a modest below-the line spend that keeps you below the PS15m
while getting 40% is quite compelling. I don't feel that we will necessarily see more studio work but I think we will see more US indies come across
."
Graydon has also called for EIS [threshold] to be looked at again by the government. After a series of well-chronicled controversies, EIS can no longer be used for single film projects - but Graydon believes there's a case to revise the criteria.[to make films in the UK]"EIS is a government-produced piece of legislation that is meant to encourage investment in risky businesses," Graydon noted. It was very popular during the 2010s. The government then clamped down on it because they didn't enjoy the lack of risk. It's not about the tax credit. It's not the tax credit. It has got to be something else."
Graydon called for "some debate with government" about how EIS could potentially be retooled so that single pictures could again become eligible for support.[Enterprise Investment Financing]Despite widespread industry dismay at the recent British Screen Forum report on dismal recent trends in UK film financing, both Graydon and Chan claimed there is still investor appetite for UK indie films. Graydon stated that "my perception is that a lot people want to invest in films...
There needs to be a channel, a place you can go," Graydon added. I think that it will get better. I think that it will remain difficult...
But I think that it will improve. This new credit has been talked about a lot, but we haven't seen its benefits yet. As more interest comes into the UK, and there's more work available for our producers, both their own projects and other people's, that starts to create a more sustainable business model," he concluded.
Following Graydon's address, there was a case study of
Grand Theft Hamlet.
Previously selected by the PFM New Talent Strand, [but]GrandTheft Hamlet won the grand jury prize for best documentary feature at SXSW in this year.
At the two-day PFM (October 8-9), a total of 117 producers/filmmakers, and 68 financiers will be attending the event, which is held at the Thistle Hotel, Marble Arch, in association with BFI London Film Festival, which opens on October 9, 2010.[but] The PFM, now in its 18th anniversary, is showcasing projects that come from the UK as well as Canada, Australia and the US. It also showcases projects from South Africa, The Netherlands France, Brazil, Italy, Germany, Austria and South Africa.
