FOUR multi-million pound movie productions have stalled because of confusion surrounding new tax rebates.

Tower Films, based in Liverpool, is looking at how the new plans for tax relief revealed in last week's Budget will effect their company.

Until then Italian investors who want to make four films with the production company are uncertain.

Tower is currently looking into how the new plans will effect the budget and production schedule before pressing on with the films.

The current system of tax relief for new UK films - 15% of production costs - was due to expire in July next year.

Chancellor Gordon Brown announced last Wednesday that filmmakers will get 20% of production costs when the current scheme finishes.

With the blossoming film industry in Liverpool, the additional cash should mean that film-makers will be able to find extra funding for their productions.

The new system of tax relief will last for an indefinite period and go direct to film-makers rather than via the financial services industry.

In the past, accountants had to be used to receive the tax breaks from the government but this was expensive.

But the government has yet to inform the film-makers of how the new incentives will work, leaving Tower on stand-by for some of the movies in pre-production.

Stephen Marsden, chief executive of Tower, said: "It is at a sensitive time at the moment with these films so I am not able to give too many details about them but the timing of this has not been great for us.

"The announcement comes as we are preparing for four films with Italian investors.

"They have stalled a little because they want to know how the new plans will affect them and, until the government let us know, then we are on stand-by.

"They are large films for us as well, £10-15m, but we hope to push on soon.

"This does not affect the films that we have already made, three of which look like they will be a big success.

"This has been a great year for us, we have funded £100m of films."

Among the films the company will release this year are School for Seduction, a Full Monty-style comedy starring actress and model Kelly Brook, and Modigliani, a drama featuring Hollywood actor Andy Garcia, whose movies include The Untouchables.

Both films are tipped to be successes.

Tower Groups technology arm Power is also celebrating after the success of its Cabvision scheme.

It is the world's first complete in-taxi TV system.

Around 10,000 London taxis will be fitted with television and DVD systems offering comedy, lifestyle,

news and music programmes.

It has proved such a success that the £25m plan has been extended to £65m with the technology going in even more black cabs.

The investment is designed to target members of the business community who have little time to watch television.

Cabvision will have a captive audience with taxi passengers having the benefit of watching a screen on even the shortest of journeys.