Tax changes hurt British film industry

Film production in England dropped 40 percent in 2004 in large part because of a tax law crackdown, The Guardian reported Wednesday.

Just 27 films were filmed in England last year compared with 45 in 2003, the journal Screen International reported, primarily because the government ended so-called double-dipping subsidies that filmmakers enjoyed previously.

Chris Auty, a producer behind films such as "Crash" and "My Summer of Love," told The Guardian that "three hammer blows" hit filmmaking in England -- the tax crackdown, a quick drop in lottery revenue and higher moviemaking costs.

The UK Film Council, however, said 2004 looked worse because 2003 was a bumper year for British film production.

Private investors put in more than $3.5 billion in British movie production in 2003 lured by giveaways worth as much as $15 million, the newspaper reported. However, a number of the films never completed production.

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