March 2021 and Television Production Restart Scheme The Film and Television Production Restart Scheme aims to support the film and television industry to restart production in the UK, by making direct compensation available to eligible film and television producers. It is only available to producers that incur Covid-19-related losses during the course of producing eligible productions, in respect of which they would otherwise be unable to self-insure or access insurance or indemnity in the commercial market on commercially viable terms.

Who qualifies? The scheme is available to pre- existing eligible productions that have had to delay or cease production and have been unable to restart (other than in anticipation of qualifying for this scheme). It is also open to new eligible productions that have been unable to commence production. It is only available when the factor preventing production is the lack of availability of insurance coverage for Covid-19-related risks on commercially viable terms. y It meets Cultural Test rules, risks in respect of the having: production and the requests have been rejected or the offer Eligible participants – An interim certificate from made was not on commercially the British Film Institute (BFI) It is available to any producer (or co- viable terms. This can be for the relevant high-end TV, producer) of an eligible production through any of the following , children’s television that is either: methods: or film tax relief; or y A company or other incorporated * Through one regulated – A signed declaration by an entity that, for tax purposes, is insurance broker. authorised representative resident solely in the UK or an of the * Directly, through at least EEA (European Economic Area) confirming that the company two regulated insurers. state; or has self-assessed as passing * A group insurance policy, a y A partnership, all of whose profits the Cultural Test. self-insurance structure or are subject to tax in the UK or one y It meets commercial viability another government fund or more EEA states. criteria, ie the producer: or scheme in a jurisdiction Only one claim can be made if it is a outside of the UK. – Is not able to obtain insurance co-production. cover for Covid-19 risks – Must hold insurance for non- under any insurance policy Covid-19 risks (or have been Eligible productions entered into in respect of the agreed in principle). production. – Has a legally binding y At least 50% of the production – Has sought to secure agreement for the production budget must be UK expenditure. insurance cover for Covid-19 in place. You must apply by the registration – Principal has been organisation placements on cut-off date which is the earlier of unable to commence/restart, shoots, or upskilling to their either: or it has restarted relying on workforce. the scheme (if the production Assessment of the commercial 1. 23:59 on 31 October 2021; was able to secure the release viability criteria of funding and commence/ y Productions with budgets over 2. The date on which DCMS decides restart principal photography £30 million will be required to to close the scheme to new only after the announcement provide documentary evidence applicants because it determines of the scheme on 28 July to the Department for Digital, that the aggregate value of 2020). Cultural, Media and Sport estimated claims payable is y It must not be an excluded (DCMS) to demonstrate that the nearing the scheme limit of £500 production (see list below) requirements have been met. million. y It must comply with “social y Productions with budgets under The fee for registering for the scheme commitments” as follows: £30 million can self-assess as is 1% of the production budget. meeting the requirements, though – Not to employ individuals on DCMS may seek to verify this unpaid internships. Note: if a production is a co-production assessment. then the fee is 1% of the aggregate – Ensure all employees are paid Excluded productions include: value of the financial interests of every the National Living Wage. y Productions involving the co-producer who is eligible and wishes to – Consider meaningfully how the reporting or discussion of news participate in the scheme. company can: or current affairs, which are broadcast live; * For feature : meet What does it cover? at least two of the BFI’s y Productions that provide coverage All compensation available under the diversity standards and of live events; scheme is provided at the sole and set of principles to tackle y Productions that are filmed absolute discretion of DCMS. and prevent bullying, (whether in whole or in part) in harassment and racism in front of a paying live audience; Two categories of losses are covered: the screen industries. 1. Cast losses are losses that y Productions that are * For TV programmes: the producer incurs when a advertisements or other meet any relevant production has to be interrupted, promotional programmes; requirements or policies postponed or abandoned, as a relating to diversity, y Productions that are produced for result of: bullying, harassment and training purposes that will not be – One or more members of the racism published by the publicly broadcast; and cast or crew (whose roles commissioning broadcaster. y Productions that are pornographic are necessary elements in * Where the above is not in nature. the production) contracting reasonably possible: Covid-19 and having to stop develop and implement How do I qualify? working (either through death policies to promote or illness); diversity and tackle Registration process * Note: a producer will need bullying, harassment and y Submit an application in to demonstrate that the racism in the workplace and accordance with the process affected individual has had apply them. defined by DCMS, setting out a Coronavirus PCR swab the details of the production and test as soon as reasonably – Publish on the company’s how the production satisfies the practicable. website diversity targets and eligibility criteria. policies on bullying, harassment – One or more of the five named and racism in the workplace. y Declare the full names of up to individuals (as declared on the five people, each of whom must original application for the – Where eligible for HETV or either be a key cast member or the scheme) needing to take time Film Tax Relief: meaningfully to director, for whom cast losses can off work because of the death consider making payments into be claimed. or critical illness of a member of the appropriate ScreenSkills their immediate family due to funds. y An eligibility certificate will be Covid-19. This does not apply received if the application is – Explore meaningfully if the named individual is over successful. the possibility of offering 70 at that time unless a Specific ScreenSkills or equivalent Age Extension has been agreed recognised training, with DCMS (see below). 2. Civil authority losses are losses y Principal photography has not Specific Age Extensions that the producer incurs when a meaningfully begun by 23:59 on y As noted above, compensation production has to be interrupted, 31 October 2021, unless this is is not normally available to a postponed or abandoned, as a solely for a reason set out in the producer for cast losses involving result of: definition of cast losses or civil an individual over 70 years of age. – Actions of the UK government authority losses above. y A Specific Age Extension may (eg local lockdowns affecting a – For this purpose, principal be agreed with DCMS for an filming location). photography will be considered additional fee of 0.25% of the – One or more members of the to have meaningfully begun production budget. cast or crew (whose roles are once at least 5 days, or 20% necessary elements in the y This extends the cover to the of the total number of days production) being unable to named individual over 70 only, scheduled, have taken place – perform their jobs because subject to an additional retention whichever is lower. they are acting in accordance of 5% for losses involving that with regulations (eg must self- individual. y Principal photography is paused isolate). due to public holidays or y A maximum of two Specific Age production scheduling and is Extensions may be obtained by a Eligible losses are measured as: scheduled to continue in 2021, single production, to cover two y Additional costs to complete the but principal photography does individuals. production above those originally not then resume within 8 weeks of budgeted, for productions Note: if a production is a co-production when it first commenced, unless interrupted or postponed. then the fee for a Specific Age Extension this is solely for a reason set out in is based on the aggregate value of the y Production costs which have been the definition of cast losses or civil financial interests of every co-producer rendered entirely valueless, in authority losses above. who is eligible and wishes to participate abandoned productions. Limits in the scheme. Losses will not be eligible where: y For postponement/interruption: y The losses were incurred after up to 20% of production budget. For advice on this scheme, please the closure date of 31 December contact Stephen Bristow, y For abandonment of production: 2021. E: [email protected] or up to 70% of production budget. alternatively speak to your usual y The losses are recoverable under y The maximum for any production Saffery Champness partner. an existing insurance arrangement will be £5 million. or under a non-UK scheme with a Further information on the various similar purpose to this one. Note: for co-producers, the limits are government support measures, together apportioned based on financial interest. y The losses arise from breaches with other Coronavirus resources for of British Film Commission / individuals and businesses, can be found Receipt on successful application PACT safety guidelines, or from at: www.saffery.com/our-services/ y The producer will be entitled to individuals breaching UK or coronavirus. recover its eligible losses less the overseas restrictions designed to scheme’s defined retention. control the spread of Covid-19. – The retention equals the y The losses could reasonably have greater of £1,000 or 10% of been avoided. Any producer using value of losses. the scheme must take reasonable y Claims will need to be made by the steps to minimise any losses cut-off date of 31 March 2022. arising.

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Saffery Champness’ Film and Television Production Restart Scheme is published on a general basis for information only. It does not constitute, and should not be construed as, investment advice nor a recommendation to subscribe to, purchase, sell or otherwise transact in any security or financial instrument. No liability is accepted for errors of fact or opinion it may contain. Professional advice should always be obtained before applying the information to particular circumstances. Views in this article expressed by external parties are their own, and do not necessarily reflect those of Saffery Champness LLP. J8577. © Saffery Champness LLP March 2021.

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