§ 37. John BarrettTo ask the Chancellor of the Exchequer what estimate he has made of the cost of film tax relief in 2004–05 after the Budget 2002 measures have been implemented.[53579]
§ Mr. Andrew SmithIt is estimated that the gross amount of relief given under section 48 Finance (No.2) Act 1997 given in 2004–05 will be £320 million. When compared with tax relief that would be available in the absence of section 48 reliefs the net tax cost is £70 million. The net tax cost of other film tax reliefs in that year is estimated at a further £70 million. The decision in Budget 2002 to restrict eligibility to British feature films intended for cinema release will reduce the amount of relief in 2004–05 by £295 million.