Sebastian Cardwell: lower HETV tax credit threshold to £500k

Paramount UK’s deputy chief content officer Sebastian Cardwell says lowering the threshold for the high-end TV tax credit would enable 5 to bring drama productions back to the UK.

The broadcaster has a burgeoning scripted presence among the domestic broadcasters and will air over 100 hours of original drama this year.

However, it operates on much lower tariffs to its PSB counterparts – between £800,000 and £1.5m an hour, Cardwell told Broadcast earlier this year and routinely under the £1m-per-hour threshold which allows scripted project to access the UK HETV tax credit.

Consequently, many of 5’s dramas are shot in countries such as Ireland or Hungary, where tax incentives are more lucrative. For example, drama The Hardacres is set in Yorkshire, but filmed in Ireland.

“There’s a big conversation around whether we should increase the tax credit for shows between £1-3m right now, and we absolutely support that,” Cardwell told Broadcast in an interview unveiling 5’s latest drama slate.

“But actually, if we were to lower that bracket to say 500-600k, we could bring our productions back into the UK.”

Cardwell, who is head of drama at Paramount UK, was reiterating comments made by his colleague Sarah Rose at the Creative Cities Convention in May, although at the time she declined to suggest a figure.

“We’ve got this situation in UK drama right now where people can’t get shows made because it’s too expensive, but at the same time shutting down [cheaper] continuing dramas like River City and Doctors,” Cardwell said.

“These are the places where people get their first break, it’s the places where low-income people might get their first credit.”

Earlier this year, it was announced that ITV was shaking up its soaps schedule, with Coronation Street and Emmerdale being reduced to 30-minute episodes with a soap hour playing across the 8pm-9pm slot from January 2026. In 2023, the BBC made the decision to axe Doctors after 23 years.

“That’s a huge issue because you’re going to have reduced opportunities for crew, a skill shortage. It’s no good making expensive shows if you haven’t got people coming through.

“If we were to lower the [HETV] bracket, we could help with that training, giving people jobs and experience, and it might rationalise the process and keep the industry healthier.”

He added this would be particularly beneficial for regional indies.

When asked if he thought other broadcasters should consider lowering their tariffs, Cardwell said he “wouldn’t ever want to tell them how to spend their money”.

“But I think we all just have to be honest that the current cost of drama just doesn’t make sense,” he warned. “It’s unsustainable.”