The Treasury is reconsidering its decision to exclude all television productions from lucrative sale and leaseback tax breaks, writes David Wood
The Treasury is reconsidering its decision to exclude all television productions from lucrative sale and leaseback tax breaks, writes David Wood

Treasury paymaster general Dawn Primarolo has said her department is giving 'very careful consideration' to the arguments from industry lobby groups such as producers' alliance Pact and

the British Television Distributors' Association (BTDA) that some television productions should be re-admitted to the film tax breaks scheme.

?The industry has...put forward a case that the production of high value TV drama and animation is an integral part of the film industry. I promise that I will give those representations very careful consideration,' said Primarolo in a letter sent to the BTDA and seen by Broadcast.

The Treasury could agree to extend the scheme based on the cost per hour of television productions and a statement is expected next week.

The admission follows the budget in April when Chancellor Gordon Brown limited sale and leaseback rules to films intended for theatrical release. The Treasury argued that the concession had been abused by the TV industry.

It resulted in an outcry from programme-makers and industry lobby groups as the tax breaks accounted for up to 10 per cent of some programme budgets.

BTDA joint chairman and Carlton International chief executive Rupert Dilnott-Cooper said: 'It appears to be an opening of the door. It is now up to us to make the best case for why we believe the maintenance of some sale and leaseback is a good thing.'

The BTDA is to discuss sale and leaseback with the Inland Revenue next week.