§ Mr. LawsTo ask the Chancellor of the Exchequer what his estimate is of the total annual(a) revenue cost and (b) economic benefit of the film industry tax reliefs introduced in and since the July 1997 Budget for each year from 1997–98 to 2005–06; and if he will make a statement. [130013]
§ Dawn PrimaroloSection 48 of the Finance (No.2) Act 1997 introduced a tax relief for expenditure on the production or acquisition of the master version of a British qualifying film with total production expenditure not exceeding £15 million. This relief is estimated to have cost £440 million for the period 1997–98 to 2001–02 and costs for the further years are estimated as follows:
£ million 2002–03 300 2003–04 140 2004–05 70 2005–06 50 We are continuing to assess the overall effectiveness of this relief as part of the Budget process.
§ Mr. LawsTo ask the Chancellor of the Exchequer what his estimate is of the yield to the Exchequer from abolishing the film industry tax reliefs; and if he will make a statement. [130014]
§ Dawn PrimaroloThere are three main measures providing enhanced tax relief for expenditure on the production or acquisition of the master version of a film. None of these reliefs has been abolished. However, the relief contained in section 48 of the Finance (No.2) Act 1997 for British qualifying films with total production expenditure not exceeding £15 million applies only to expenditure incurred on or before 2 July 2005. I also refer the hon. Gentleman to the answer which I am today giving to his companion question 130013.