The break is worth 16 per cent on large budget movies and 20 per cent on smaller projects, and is eligible to films qualifying as British as judged by a complicated points scheme that is administered by the Department of Culture, Media and Sport.

A film does not have to be filmed entirely in Britain to qualify for the break.

The tax break is available to the producer of a film, rather than the financiers, in a change from the much-criticised previous system — which encouraged investment in projects that were barely viable but still had tax benefits.

The scheme was first announced in the Pre-Budget report in 2005, after a long period of consultation. While producers waited for the new rules to be clarified, production investment declined sharply, and films such as Casino Royale moved overseas to save money.

The Bond movie was shot largely in the Czech Republic, although a token amount of work was handled in the UK. The new rules do not come into effect until January 1 next year.

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