As the third largest film market in the work, the U.K. has a reputation for high quality productions. There are three key reasons why filmmakers choose to produce in the U.K:
1. Easy access to high-quality studio’s, laboratory and post-production facilities, performers and services.
2. Highly beneficial tax incentives aimed at film producers.
3. A favorable exchange rate
In 2000, the U.K. Film Council was established with the intention to promote the competitively of U.K. film industry in a worldwide market. In 2011, the U.K. Film Council was dissolved and transferred into the BFI. The BFI is also in charge of the certifications of films. This is important as it enables filmmakers to access the U.K. film tax relief.
How to finance a film in the UK
There are a number of finance structures that can be taken when financing films in the UK. Most film productions employ the financing method where provisions for the proportion of a film’s total budget are made in return for an involvement in a co-production or the acquisition of distribution and broadcasting rights.
When a film is produced under the terms of an international co-production agreement between two or more countries is know as ‘Co-Production’. These films made under a bilateral co-production treaty or the European Convention on Cinematic Co-production. Under these agreements international co-operation between filmmakers is encouraged.
Collaboration of filmmakers from more than one country is encouraged by offering incentives such as allowing produced to access the support provided to national films in each of the co-producing countries including, where appropriate, tax incentives.