HC Deb 27 February 2002 vol 380 cc1331-2W
Matthew Taylor

To ask the Chancellor of the Exchequer if he will place in the Library the studies that his Department has undertaken of the efficacy of sections 42 and 48 of the Finance (No. 2) Act 1997; and if he will make a statement. [38115]

Dawn Primarolo

Film production benefits comprise two accelerated tax reliefs, section 42 of the Finance (No. 2) Act 1992 and section 48 of the Finance (No. 2) Act 1997. The Inland Revenue is currently evaluating their efficacy in stimulating additional film production.

Matthew Taylor

To ask the Chancellor of the Exchequer if he will estimate the Exchequer cost of sections 42 and 48 of the Finance (No. 2) Act 1997 for the three fiscal years from April 2002; and if he will make a statement. [38114]

Dawn Primarolo

Film production benefits from two accelerated tax reliefs, section 42 of the Finance (No. 2) Act 1992 and Section 48 of the Finance (No. 2) Act 1997. The estimated tax cost of relief provided to British qualifying films under section 48 is £85 million for films produced in 1999–2000. Section 48 was extended for a period of three years in Finance Act 2001 and the tax cost of the relief for films was estimated at an average of £90 million a year to 2004–05. The tax cost of section 42 relief is estimated to be an additional £70 million a year.