Film studio behind blockbuster Wicked pocketed HUGE sum from UK taxpayers
THE Hollywood film studio behind blockbuster Wicked pocketed £28million from UK taxpayers.
Universal was eligible for the tax relief because much of the £148.6million movie was made here.
The US giant gained net profits of £12billion last year and the huge sum it gets for the Wizard of Oz prequel comes as Britons struggle with rising energy bills and a surge in taxes.
John O’Connell, of the TaxPayers’ Alliance, told The Sun: “It’s little wonder the majority of taxpayers feel hard done by when they see the eye-popping sums saved by larger companies.
“It’s vital to drastically simplify the tax system to make it much easier to understand, while eliminating carve outs and reliefs so that everyone is on a level-playing field.”
Wicked, starring Ariana Grande and adapted from the West End musical, hit cinemas last Friday and has already made £153.6million worldwide.
It was filmed at Sky Studios Elstree, Herts, and Buckinghamshire, where a Yellow Brick Road was laid and nine million tulips planted to recreate Munchkinland.
Film budgets are usually confidential as the big studios put the cost in overall expenses.
UK-made movies are exceptions because studios must set up separate production firms to claim Government tax relief of up to 25.5 per cent of the money spent in the country.
The UK benefits from studios paying for equipment hire, travel and visual effects, creating many jobs.
Studio firms often have codenames so they don’t raise attention with fans when filing for permits to film on location.
The Universal firm behind Wicked is Western Sky, a nod to the Wicked Witch of the West (Cynthia Erivo in the film).
Costs and tax credit are shown in its latest accounts for the year to February 28, 2023.
Both sums are set to be higher in the next accounts as filming continued until January 2024.
Wicked Part Two is due out next year.