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Last Updated: Wednesday, 26 April 2006, 14:17 GMT 15:17 UK
Financier 'pulls out of UK films'
Audrey Tautou and Tom Hanks in The Da Vinci Code
Invicta Capital found funding for The Da Vinci Code movie
A leading finance firm that channelled an estimated 1.25bn into British films is pulling out of the industry because of new tax laws, it has been reported.

London-based financial advice company Invicta Capital will not help fund any more films, according to Screen Daily.

The company recently found funding for the upcoming Da Vinci Code movie.

But the closure of a tax loophole that allowed its wealthy clients to offset their film investments against tax has led them to move into other areas.

'Uncertainty'

In March, Chancellor Gordon Brown announced a new tax credit for producers whose films passed a "culturally British" test.

But producers' trade association Pact said there was still uncertainty in the industry because the legislation was "highly complex and there are a number of issues that need to be resolved".

A Pact spokesman said: "I think Invicta came to their decision because they don't see the same level of return for their investors under the new regime.

"It's always disappointing when a leading financier pulls out of funding film.

"But we hope that in the long term the new tax credit will generate a larger net contribution to the budget of films."


SEE ALSO:
Producers warn over film tax move
22 Mar 06 |  Entertainment
The future of British film-making
17 Feb 06 |  Entertainment
UK films enjoy box office bonanza
16 Jan 06 |  Entertainment
Tax change for movies made in UK
05 Dec 05 |  Entertainment
Studios 'put off' by UK tax laws
28 Nov 05 |  Entertainment
Film industry 'adds 3.1bn to UK'
22 Sep 05 |  Entertainment


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