Eady Levy
From The Art and Popular Culture Encyclopedia
| Revision as of 16:20, 15 April 2009 Jahsonic (Talk | contribs) ← Previous diff |
Current revision Jahsonic (Talk | contribs) |
||
| Line 1: | Line 1: | ||
| {{Template}} | {{Template}} | ||
| + | The '''Eady Levy''' was a [[tax]] on [[box office]] receipts in the [[United Kingdom]], intended to support the [[British film industry]], and named for [[Wilfred Eady|Sir Wilfred Eady]]. It was established in 1957, and terminated in 1985. | ||
| + | |||
| + | == Background == | ||
| + | |||
| + | A [[levy]] was first proposed by [[Harold Wilson]], then president of the Board of Trade, in 1949. The levy was intended to assist producers of [[Cinema of the United Kingdom|British film]]. A direct governmental payment to British-based producers would have qualified as a [[subsidy]] under the terms of the [[General Agreement on Tariffs and Trade]], and would have led to objections from [[Cinema of the United States|American film producers]]. An indirect levy did not qualify as a subsidy, and so was a suitable way of providing additional funding for the UK film industry whilst avoiding criticism from abroad. | ||
| + | |||
| + | == The levy established == | ||
| + | |||
| + | The Eady Levy came into effect on [[9 September]] [[1950]] but was not established on a statutory basis until its incorporation in the Cinematograph Film Act of 1957. It had the effect of both assisting the film industry, and reducing the effect of Entertainment Tax on film exhibition, to which all the [[film|cinema]] industry was opposed. | ||
| + | |||
| + | In the Eady Levy, a proportion of the ticket price was to be pooled — half to be retained by exhibitors (ie, effectively a [[rebate]] on the tax) and half to be divided among qualifying [[List of British films|'British' films]] in proportion to UK box office revenue, with no obligation to invest in further production. The Finance Bill (1950) had previously made the necessary changes in the Entertainments tax. The levy was collected by [[HM Customs and Excise]] and administered by the [[British Film Fund Agency]]. | ||
| + | |||
| + | The rise in British cinema (including the [[James Bond]] movies) during the 1960s caused by an influx of American producers can be attributed to the Eady Levy - and also to the cheaper production facilities - making it cost far less in the UK to achieve the same quality of production. A number of American film makers worked in Britain in this period on a near-permanent basis, including [[Sidney Lumet]], [[Stanley Donen]], and [[John Huston]]. [[Stanley Kubrick]] moved to Britain in the early sixties to make ''[[Lolita (1962 film)|Lolita]]'', ''[[Dr. Strangelove]]'', ''[[2001: A Space Odyssey (film)|2001: A Space Odyssey]]'' and ''[[A Clockwork Orange (film)|A Clockwork Orange]]'' amongst others. Another expatriate American, Richard Lester, directed [[The Beatles]]' films ''[[A Hard Day's Night (film)|A Hard Day's Night]]'' and ''[[Help! (film)|Help!]]''. | ||
| + | |||
| + | It was not only American film makers who came; a number of distinguished European directors also made films in Britain. These included [[Roman Polanski]], [[François Truffaut]] (who made ''[[Fahrenheit 451 (1966 film)|Fahrenheit 451]]'') and [[Jean-Luc Godard]]. | ||
| + | |||
| + | The Eady Levy also provided funding for the [[National Film and Television School]], which trained a number of directors and actors still in work today. It also provided funding for the boost of the British [[pornography|pornographic film]] industry through the 1970s | ||
| + | |||
| + | == Termination of the levy == | ||
| + | |||
| + | The Eady Levy was a tax on box office receipts, and was intended to support UK film production. However, in a [[White Paper]] in 1984, the [[British Government]] recognised that the levy was no longer fulfilling its original purpose, with much of the payment going directly to distributors rather than producers, and proving an unreasonable burden on the exhibition sector. The Eady Levy was terminated in 1985. | ||
| + | |||
| + | == See also == | ||
| + | |||
| + | *[[Cinema of the United Kingdom]] | ||
| + | |||
| {{GFDL}} | {{GFDL}} | ||
Current revision
|
Related e |
|
Featured: |
The Eady Levy was a tax on box office receipts in the United Kingdom, intended to support the British film industry, and named for Sir Wilfred Eady. It was established in 1957, and terminated in 1985.
Contents |
Background
A levy was first proposed by Harold Wilson, then president of the Board of Trade, in 1949. The levy was intended to assist producers of British film. A direct governmental payment to British-based producers would have qualified as a subsidy under the terms of the General Agreement on Tariffs and Trade, and would have led to objections from American film producers. An indirect levy did not qualify as a subsidy, and so was a suitable way of providing additional funding for the UK film industry whilst avoiding criticism from abroad.
The levy established
The Eady Levy came into effect on 9 September 1950 but was not established on a statutory basis until its incorporation in the Cinematograph Film Act of 1957. It had the effect of both assisting the film industry, and reducing the effect of Entertainment Tax on film exhibition, to which all the cinema industry was opposed.
In the Eady Levy, a proportion of the ticket price was to be pooled — half to be retained by exhibitors (ie, effectively a rebate on the tax) and half to be divided among qualifying 'British' films in proportion to UK box office revenue, with no obligation to invest in further production. The Finance Bill (1950) had previously made the necessary changes in the Entertainments tax. The levy was collected by HM Customs and Excise and administered by the British Film Fund Agency.
The rise in British cinema (including the James Bond movies) during the 1960s caused by an influx of American producers can be attributed to the Eady Levy - and also to the cheaper production facilities - making it cost far less in the UK to achieve the same quality of production. A number of American film makers worked in Britain in this period on a near-permanent basis, including Sidney Lumet, Stanley Donen, and John Huston. Stanley Kubrick moved to Britain in the early sixties to make Lolita, Dr. Strangelove, 2001: A Space Odyssey and A Clockwork Orange amongst others. Another expatriate American, Richard Lester, directed The Beatles' films A Hard Day's Night and Help!.
It was not only American film makers who came; a number of distinguished European directors also made films in Britain. These included Roman Polanski, François Truffaut (who made Fahrenheit 451) and Jean-Luc Godard.
The Eady Levy also provided funding for the National Film and Television School, which trained a number of directors and actors still in work today. It also provided funding for the boost of the British pornographic film industry through the 1970s
Termination of the levy
The Eady Levy was a tax on box office receipts, and was intended to support UK film production. However, in a White Paper in 1984, the British Government recognised that the levy was no longer fulfilling its original purpose, with much of the payment going directly to distributors rather than producers, and proving an unreasonable burden on the exhibition sector. The Eady Levy was terminated in 1985.
See also
