By Catriona Finnie, Film tax specialist, Chiene + Tait

WITH the Scottish landscape and cities providing the ideal setting for the likes of James Bond, Harry Potter, Hamlet and the Avengers in recent years, Scotland’s film sector could be in for another major boost.

At the end of last year the Scottish Government gave the go-ahead for the new Pentland Studios near Edinburgh. The new facility, which could be operational by the end of this year, will include six large sound stage film and TV studios along with two backlots, a hotel, visitor centre, film academy, energy centre, workshops and a creative industries hub. As well as creating up to 1,600 jobs, the new studios should provide a longer-term boost to Scotland’s film and TV industry and help it secure more international opportunities, building on the back of recent success.

Having new studio facilities in place could also help Scotland become a key location for more globally popular TV series like Game of Thrones which, despite filming in locations such as Doune Castle for its pilot episodes, opted to move its production to other locations.

While Scotland’s film and TV industry will certainly be aiming to further raise its game, it does already have a good number of things to shout about at the moment. A record £69.4 million was spent producing programmes here in 2017, a huge increase of nearly 60 per cent compared to the previous year. The industry in Scotland also enjoys benefits under the UK film tax regime where production companies based here receive a 25 per cent rebate when qualifying criteria is met. Projects shooting in Scotland can also receive additional funding from the Production Growth Fund and Screen Fund, both available from Creative Scotland.

The Scottish film and TV industry is clearly on the up and the new studios should drive additional growth but why stop there? The Scottish and UK Governments could provide further support to the sector and potentially bolster the wider economy by following the example of the Republic of Ireland. Its film and TV industry is supported by a tax regime which provides production companies with a 32 per cent rebate where qualifying conditions are met, making it one of the best tax incentives in Western Europe. The Irish Government also recently amended its legislation to enable non-EU talent, including Hollywood actors, to be included as part of qualifying expenditure. This means tax relief can now be claimed on the salaries of cast and crew hired to work in the Republic of Ireland, irrespective of their nationality.

These measures have provided a huge economic boost for Ireland. The broader industry – known as the audio-visual content production sector, which includes TV and online output, as well as cinema – employs more than 6,000 people in the Republic of Ireland alone, engaging more than 500 businesses and generating more than €550 million turnover annually. In 2017, Ireland saw spending on film and TV increase 58 per cent to €89 million, approximately 12 per cent higher than expenditure in Scotland in the same period.

While there are many positives about Scottish film and TV, including the development of the Pentland Studios, it’s an important industry with a great opportunity to maximise its full potential. Further support through the UK and Scottish tax regime could help Scotland replicate the growth that has been achieved in the Republic of Ireland in recent years. By following the example set by the Irish Government, we could leverage on the recent successes enjoyed by our industry and help it further enhance Scotland’s international profile, boosting our economy at a time when we may most need it.