The UK Government has signaledits intent to do away with Section 42 as well as Section 48 in a set of long-awaitedproposals for new tax incentives for the British film industry. In future, low-and high-budget films would be bedealt with under a "single coherent regime".

At the same time, theDepartment for Culture, Media and Sport has launched a consultation on aproposed "cultural test" to ensure that films which qualify for thenew tax relief "are genuinely culturally British." The aim behind the