The European Commission has offered further clarification asto what has caused its delay in EC approval for the new UK film taxlegislation. The EC now says it is aiming to make a decision "by the endof the year."

In a statement to ScreenDaily.Com yesterday, EuropeanCommission Spokesman on Competition Jonathan Todd commented:

"The details of the UK film tax incentive have beenmodified at various times by the UK authorities long after the case wasnotified to the Commission. For instance, the latest guidance notes for the UKCultural Test (published on the DCMS website) are dated June 2006. This hasdelayed our review."

Todd added that "a few aspects of the scheme cause someconcern to the Commission." He didn't specify which points these were, butsaid that the EC was in discussion with the UK authorities to try to resolveany outstanding issues. "We hope to issue a decision before the end of theyear, assuming the UK authorities provide us with the elements which addressthe Commission's concerns."

As previously reported, the issue has been an ongoing concern for the UK industry.