Give Us A Break

The British record industry is requesting a tax break for the money it spends developing new acts.

Peter Jamieson, executive chairman of the British Phonographic Industry, said the Creative Economy Programme – which allows companies a tax concession for money spent on research and development – should be extended to cover what the record industry spends on new artists.

The BPI argues that the music sector spends a bigger proportion of its annual turnover on R&D than the aerospace, motoring and defense sectors combined. Only the pharmaceutical industry spends more.

Jamieson pointed out that the music industry spends some £200 million a year, which is the equivalent to 17 percent of its annual revenues.

“We believe the time is right for government, together with industry, to consider closely a tax-credit regime for A&R [artist and repertoire], which is the music business’s research and development,” he explained.

“Such a system would create incentives for greater investment in our industry, and would put the development of British intellectual property on the same footing as in other industries.”

Apart from the £200 million R&D spends, which makes an enormous contribution to the British economy, record sales generated £300 million of VAT revenues.

– John Gammon