IPA calls for creative tax breaks to include advertising
|09 Aug 2012 11:28 BST||Back|
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The IPA has called on HM Treasury to extend proposed creative tax breaks to include the advertising sector.
The IPA has submitted its response to the Creative Sector Tax Reliefs Consultation, arguing that it is illogical to exclude advertising from HM Treasury’s proposed tax relief system for the creative sector.
The consultation closes on 10 September and seeks views on plans, announced in Budget 2012, to introduce corporation tax relief for the animation, high-end TV and video games industries as part of its ambition to make the UK the technology centre of Europe.
As reported in The Drum, the IPA argues that advertising agencies employ the same production companies that specialise in animation and high-end television, and without a flourishing advertising agency, these productions would be unable to hire skilled production crew and animators, forcing them to look abroad for talent.
The UK is already facing stiff competition from overseas businesses, the IPA argues, pointing to TV commercial production companies in Buenos Aires, Cape Town and Prague that have gained work that would have previously gone to UK talent.
Chris Combemale, executive director of the Direct Marketing Association said: “We support the IPA's call to extend proposed corporation tax relief for the advertising and marketing industries. Direct marketing uses the latest advances in technology to deliver innovative campaigns across a host of digital media, including email, social, online, interactive TV and mobile.
"As the findings of our recent Putting a price on direct marketing reveal, companies are already spending billions of pounds a year on digital marketing, and investment is set to increase by at least 7% in 2012. The Government needs to recognise the valuable contribution direct marketing makes to the UK economy and make it even more competitive in the international marketplace."