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Bollywood prefers South Africa to UK
25th Dec 2006 13.15 IST
By Agencies

The UK movie industry might lose dozens of Bollywood productions filmed in London each year because of new rules for cinema tax-breaks being introduced next month.

According to rough estimates, about 200 Indian films were made in the UK this year, with Westminster council alone hosting 50 shoots.

But UK Film Productions, which provides scouting, catering and extras for Indian film makers wanting to locate in Britain, believes it could see a 50 per cent fall in business next year thanks to the new tax system.

The company worked on 15 Indian films in the UK this year. Seven of its shoots were with a single producer, Sudhakar Bokade, who is relocating to South Africa next year.

Indian filmmakers are attracted by the famous landmarks and scenery. But they also come for the tax breaks, which until now applied to productions that spend more than 20 per cent of their budget in the UK.

From January 1, any production wanting to qualify for tax relief must spend at least 25 per cent of the budget in the UK and pass a "cultural test" for Britishness, earning a minimum, of 16 out of 31 points for criteria such as hiring British actors and crew and using the English language.

According to UK Film Productions founder David Choudhry: "If these productions stop coming to the UK we may have to shut down. We expect to do half as many films next year."

The company provides scouting, catering and extras for Bollywood productions looking to film in England.

The UK Film Council is negotiating co-production treaties with several countries, including India, Jamaica, China and Morocco where foreign products would not have to pass a cultural test to qualify for tax relief.

The Government estimates that it has been subsidising the UK film industry to the tune of between 300 million pounds and 500 million pounds a year. Under the new rules, the subsidy will drop to between 120 million pounds and 150 million pounds a year, but with between 16 per cent and 20 per cent of tax relief handed to producers.

Crucially, from next year tax relief can no longer be claimed by companies set up by sale and leaseback partnerships. The subsidy will instead be paid to the company responsible for the principal photography, post-production and completion of the film.

Some of the forthcoming Bollywood movies shot in UK include I See You and Namaste London .

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