Aardman exec says British tax breaks should not be feared
Ireland should still have a competitive environment even if the British government brings in new incentives to aid its animation industry, a conference has been told.
The Irish animation industry has benefited greatly from section 481 tax breaks, which allow Irish-based companies to become co-producers on British animation projects.
However, British chancellor George Osborne has indicated he intends to bring in tax incentives for high-end dramas and animation productions next year, saying he wants “to keep Wallace and Gromit exactly where they are”.
The Oscar-winning feature is made by Aardman Animations. Its finance director Kerry Lock told the Cartoon Finance conference in Dublin yesterday that Ireland would still retain a critical advantage.
He said section 481 tax breaks allowed companies to get the money for production up front, while the British system was more likely to be a tax credit claimed back after the end of production, forcing businesses to incur substantial costs.
“The key thing for the producers in the small projects is that you get the money up front.”