£17.4m Tax Credit Cuts Amazon's LoveFilm Loss

Force: Under The Dome has been a hit for the division

Force: Under The Dome has been a hit for the division

In its last year as an independent company British DVD rental business LoveFilm paid £2.5 million in tax on sales of £90.6 million.

However, accounts just filed for the company, which was bought by US online retail giant Amazon in 2011, show that rather than paying tax, it received a tax credit of £17.4 million, even though sales have shot up to £128 million.

Amazon is no stranger to controversy over its tax affairs and last week attracted criticism when accounts showed it paid just £11.9 million in tax on UK sales of £5.3 billion last year.

LoveFilm, now called Amazon Instant Video, has gone from making a £6.3 million profit in 2010 to a loss of £71.5 million in the year to December 31, 2014, up from £51.3 million previously. 

But with the £17.4 million tax credit, Amazon was able to cut the loss for the year to £54.1 million.

The company said that costs increased ‘due to the increased volume and cost of acquired content'.

Amazon bought LoveFilm in 2010 and has been investing heavily in its online streaming technology and new video on demand service. 

As well as LoveFilm by Post, http://lostfilm.hd-lostfilm.art the Amazon Instant Video division includes Amazon Prime.

The services allow people to buy or rent more than 50,000 films and TV programmes or stream 15,000 titles.

One of the division's hits has been Under The Dome, about a small town that gets cut off from the world by a forcefield.