§ 37. John Barrett
To 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.
§ Mr. Andrew Smith
It 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.