The British film industry has welcomed the extension of the film tax relief scheme to 31 December 2015.

The scheme promotes the production of films which are classed as ‘culturally British’ by the British Film Institute.

Film tax relief is available for the expenses incurred by film production companies on the production of a film intended for theatrical release in commercial cinemas.

To be eligible for the scheme, a film must be certified British either by passing a cultural test, or under an agreed co-production treaty. At least 25% of the total production expenditure must be incurred in the UK, and relief can only be claimed on production expenditure in the UK, up to a maximum 80% of the total budget. Higher rate relief is available for limited-budget films (with a total production expenditure of £20m or less), and those companies not making a profit may be able to surrender the relief for a payable tax credit.

In 2009/10, the scheme provided around £95 million of support to the British film industry.

Ed Vaizey, Culture Minister, said, ‘The huge success of British films at the Oscars, the Golden Globes and the BAFTAs this year is clear recognition of our world class talent and creativity. But as a vital creative industry, it also has huge potential for economic growth. Film tax relief is at the heart of our drive to support the production of culturally British films within a sustainable and vibrant industry’.

Those were the findings of a new study commissioned by the web giant Google. The report found that small businesses that actively use the internet report sales growth more than four times greater than that of less active companies.

According to the study, the internet contributes £100 billion a year to the UK economy and now accounts for 7.2% of the UK’s gross domestic product (GDP).

Of the £100bn, 60% is made up of internet consumption – the amount that users spend on online shopping and the cost of accessing the web.

The remainder comes from investment in the UK’s internet infrastructure, government IT spending and net exports.

Furthermore, experts have concluded that the UK is now the world’s leading nation for e-commerce and for every £1 spent online to import goods, £2.80 is exported.

Matt Brittin, managing director of Google UK, said: ‘The internet is a central pillar of the UK’s economy.

‘The sector has come of age, and with great prospects for further growth the UK internet economy will be vital to the UK’s future prosperity’.