Netflix receives €57000 tax rebate from UK government in 2018
Streaming giant Netflix received a €57,000 (£51,000) tax rebate from the UK government last year despite making an estimated £700.0m from just its UK subscribers.
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High-quality TV shows made in the UK that cost more than £1.0m per episode to make and films that pass a “cultural test” are eligible for tax relief from the government, as incentives to make sure Britain remains a competitive location for making productions.
Netflix said in its Companies House report: “Based on HMRC group relief rules, the company used a credit stemming from these Netflix UK production activities against its recorded profit.”
The company announced UK revenues of €48m for 2018 and pre-tax profits of €2.3m. It also reported that it had reached over 10.0m subscribers.
It wasn't the first time that the company had received a tax rebate from the British government.
In 2017, when its revenues from British subscribers reached £500.0m, it received a €199,000 rebate.
Analysts expected Netflix’s UK subscription revenues to rise to just short of £1.0bn in 2019.
Netflix UK’s financial filing also revealed that the company had pledged hundreds of millions of pounds to secure studio space over the next decade as it prepares to start making new productions in England in the near future.
In a first move, starting from October, Netflix would take over Shepperton Studios as part of a 10-year deal to guarantee itself the space it needs.
The company was set to spend £400m ($500m) in 2019 making more than 50 films and TV shows in the UK.