Press Room.
Budget comment: swings and roundabouts for the media
sector
If you are writing on the impact of today's Emergency Budget
announcements on the media sector, please consider the comments of
Liz Brion, Head of Media Tax at Grant Thornton.
"Overall, today's emergency budget announcements were not
particularly helpful for the media sector but could have been much
worse.
"The Capital Gains Tax increase for higher rate investors will
be an unwelcome announcement as transactional activity in the media
sector is just beginning to recover. However this is balanced by an
increase to the 10% rate band for those selling their trading
companies where the first £5m of gains can benefit from
entrepreneur's relief; it is just a shame this relief was not
extended to employee share schemes.
"Today's announcement that the proposed video games relief has
been scrapped is a real blow to a sector which makes a significant
contribution to the UK economy. It also makes the prospect of a
future tax relief for the animation industry much more remote. At
least the Government has taken note of the recent Oxford Economics
Report and Film Tax Relief remains in force. There is also a
correction to the anomaly which restricted businesses from claiming
full relief as was promised by the previous Government in the
Pre-Budget Report.
"The reform of corporation tax will give the media sector and
the rest of the UK economy a boost. It still remains to be seen
what incentives will be provided to companies that generate
intellectual property, which at least remains on the Government's
agenda."
ENDS
For further information, please contact:
For further information, please contact: Lisa Ritchie, Grant
Thornton Press Office: 020 7728 2208 or email: lisa.ritchie@gtuk.com
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